Monday, March 4, 2024

FTX Founder to Testify before Congress on Tuesday

'Based on your role as CEO and your media interviews over the past few weeks, it's clear to us that the information you have thus far is sufficient for testimony...'

UPDATE: Sam Bankman–Fried was arrested Monday night prior to testifying in the House hearing. Complete details on the arrest are here.

(Molly Bruns, Headline USA) Sam Bankman–Fried, the former CEO of crytpocurrency company FTX, will testify before the House Financial Services Committee during a hearing on Tuesday titled “Investigating the Collapse of FTX, Part I.”

According to the Post Millennial, Bankman–Fried posted about the upcoming court date on Twitter.

“I still do not have access to much of my data – professional or personal. So there is a limit to what I will be able to say, and I won’t be as helpful as I’d like,” he tweeted. “But as the committee still thinks it would be useful, I am willing to testify on the 13th.”

New FTX CEO John J. Ray will also testify in the hearing.

FTX, recently revealed to be a de-facto money laundering scheme for Democratic politicians (along with some Republicans on a much smaller level), is facing a massive scandal after billions of in customer funds disappeared, resulting a bankruptcy filing on part of the company.

Bankman–Fried is being investigated by the Justice Department for his potential involvement in the disruption and subsequent collapse of two other cryptocurrency companies, TerraUSD and Luna.

The Securities and Exchange Commission is also investigating FTX for financial malfeasance surrounding a massive money transfer to Alameda Research, in an attempt to cover a gap in the company’s funding.

Bankman–Fried’s personal net worth took a hit after the scandal broke, reportedly shrinking by 94%.

Bankman–Fried donated nearly $37 million to Democrats in the 2021-2022 election cycle, making him the party’s second largest donor to the party, after George Soros. He gave $240,200 to Republican candidates.

The committee’s out-going chair, Rep. Maxine Waters, D-Calif., tweeted at Bankman–Fried to invite him to the hearing.

“Based on your role as CEO and your media interviews over the past few weeks, it’s clear to us that the information you have thus far is sufficient for testimony,” she tweeted.

There has been no indication that the committee will be asking Bankman–Fried about either his donations to Democrats in the lead up to the midterms or his relationship with Ukraine.

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