CRYPTO CATASTROPHE

House Expects Sam Bankman-Fried to Testify in FTX Probe

The hearing will look into the crypto exchange’s catastrophic fall after more than $10 billion in client money was misappropriated.

The House Financial Services Committee will hold a hearing next month to discuss the collapse of failed crypto exchange FTX following the company’s misappropriation of more than $10 billion in client funds. The committee said it expects to hear directly from Sam Bankman-Fried, the Bahamas-based founder of the company who’s been ousted in the wake of the firm’s implosion. “The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” Rep. Maxine Waters (D-CA) said in a statement. The hearing could spur further legislative action as both Democrats and Republicans grapple with the volatile crypto market, particularly in light of significant crypto donations helping shape the 2022 midterms. “It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system,” Rep. Patrick T. McHenry (R-NC) said.