Win McNamee
US Congressmen Elizabeth Warren (D-MA) and Dick Durbin (D-IL) want the now-defunct cryptocurrency exchange FTX to review its operations and investments from 2019 to today.
Warren and Durbin sent a letter earlier this week for FTX ex-CEO and founder Sam Bankman-Fried and John Ray III, who replaced SBF as the current director after FTX and more than 130 partners filed for Chapter 11 on November 11, seeking more information about the structure of the SBF crypto empire. before November 28.
“New revelations continue to shed light on what appears to be a horrific story of greed and fraud,” the letter read. “The public owes a clear accounting of the business operations and financial performance that led to the collapse of FTX and the loss of billions in customer funds.”
MPs also said that they want to understand FTX’s opinion behind acquiring the insolvent crypto loan Voyager Digital (OTCPK: VYGVQ), as well as the details of the past relationship with its sister company Alameda Research, and the responsibility of $1.7B of client money that appears. he disappeared.
“Billions of dollars worth of trading capital appears to have disappeared into ether (ETH-USD),” the letter said.
Based on Bankman-Fried’s tweet last week about the mistakes he made that led to FTX’s collapse, the letter also sought to clarify how SBF’s “non-internal labeling” contributed to FTX’s collapse.
FTX, which previously had a value of $32B, has been under a lot of scrutiny in recent days after its sudden collapse that affected 1M customers. It has already been investigated by the Manhattan US attorney’s office and is being questioned by Bahamian authorities.
On Wednesday, a US House committee will hold December hearings on FTX.
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