Rep. Maxine Waters (D-CA) and Rep. Patrick McHenry (R-NC), elected member of the House Financial Services Committee, said that he plans to hold a bipartisan hearing in December to consider the collapse of the multi-billion dollar cryptocurrency. FTX exchange and its “multiple consequences” for digital economy space, according to a to release on the third.
FTX founder and former CEO Sam Bankman-Fried along with the hedge fund, Alameda Research, and rival Binance, which temporarily offered to release FTX, are all expected to attend the hearing.
“The collapse of FTX has created a huge crisis for one million users, many of whom were everyday people who invested their hard-earned money in the FTX cryptocurrency exchange, only to see it all disappear in a matter of seconds,” Waters said. words. “Unfortunately, this incident is one of the many examples of cryptocurrency platforms that have collapsed this past year.”
With many pieces of the FTX-fiasco picture still missing, McHenry stressed that “we have to get to the bottom of this for FTX’s customers and the American people,” referring to Congressional oversight activities.
Neither FTX nor Alameda Research immediately responded to Seeking Alpha’s request for comment.
The once-powerful crypto empire SBF, made up of FTX and Alameda, has come under heavy scrutiny after filing for Chapter 11 bankruptcy in the US, following an investigation by the Manhattan US attorney’s office and Bahamian authorities.
FTX’s financial crisis in the digital economy continues to spread, with cryptocurrency seller Genesis temporarily suspending customer discounts.
Dear readers: We recognize that politics is often at odds with today’s economic issues, so we invite you to click here to join the political conversation.