This is not the end of the story of FTX! This crypto exchange company filed for bankruptcy on November 11. The losses of investors today are estimated at several billion dollars. Granted, Sam Bankman-Fried is still trying to raise funds to reimburse FTX clients (rumored). Nevertheless, the competent authorities should not let this matter pass. This is the case of the financial services of the United States House of Representatives, which will soon hold a hearing on the fall of FTX.
FTX under the radar of many authorities
The debacles around FTX have necessarily caught the attention of regulators and many other authorities. According A declaration released on November 16, the US House of Representatives Financial Services Committee plans to investigate the momentous downfall of Sam Bankman-Fried’s empire. To this end, he will hold a bipartite hearing in December during which he will hear from all the parties concerned.
Thus, the investigation soon to be conducted by the US House of Representatives will not only concern Sam Bankman-Fried. It will also involve other entities, such as Alameda Research, Binance and representatives of FTX (of course).
An investigation… Yes, but to what end?
“FTX’s downfall caused enormous harm to over a million users, many of whom were ordinary people who had invested their hard-earned life savings in the FTX cryptocurrency exchange, only to see them disappear within seconds.” Such is the statement Marine Waters, chair of the US House of Representatives Financial Services Committee.
The members of this committee agree on one point: to hold bad actors accountable. The goal is to allow “more” responsible actors to exploit crypto and blockchain technology to create a more inclusive financial system.
Some lament the resounding fall of FTX, once considered the fourth largest crypto exchange. Others expect drastic sanctions, especially since a large number of people have seen their savings disappear in a short time. Both must however wait for the end of the various hearings to know the outcome of the story. To be continued…
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