Nothing has been going well since the bankruptcy of FTX, the second largest cryptocurrency exchange in the world. Indeed, the scandals are linked and heads continue to roll. This time, it’s the politicians’ turn to step up to get answers and identify the culprits. The Republicans accuse the Democrats of having turned a blind eye to the slippages of Sam Bankman-Fried and ignite the controversy.
FTX dossier: The new weapon of the Republicans against the Democrats
The explosion of FTX on November 11 will not have ceased to be talked about. Since then, new repercussions have emerged, including the dismissal of 3 former employees close to the ousted director Sam Bankman-Fried. Added to this is the strategic review of global assets initiated by FTX Trading Ltd and nearly 100 affiliates. This in the process of managing Chapter 11 bankruptcy.
According to wall street journalsenator from Missouri Josh Hawley would have put the matter back on the table by asking for several matches. Said correspondence would implicate federal agencies, the Democratic Party, the Senate as well as Biden’s administration. All this in order to remove the ambiguity on the 37 million dollars of donations that Sam Bankman would have offered to the party in power.
Also, the Republicans fear that their colleagues in Congress would have applied flexible regulatory policies at the place of Bankman-Fried reports the Wall Street Journal.
Moreover, the new administration of FTX having at its head John J. Ray is ordered to provide documents by 1 December at the latest. This is in line with the operation carried out by the chairman of the panel who wishes to elucidate this affair as quickly as possible.
In addition, things are moving on the side of FTX which is trying to limit the damage. Indeed, the new director would have hired the investment bank Perella Weinberg. This intervenes in the process of liquidation of certain assets belonging to FTX Debtors for a reorganization of the structure.
Also, his Japanese unit, led by Seth Melamed, reportedly developed a system that would allow customers to withdraw their funds. Good news for retirees whose passion funds have been partially invested. They will enjoy an advantage through the fallout crypto.
Conclusion
After sending customers’ money to trading company Alameda, the FTX cryptocurrency platform experienced an unprecedented boom. This led to several heavy consequences that caused the leadership to exit. These demand reply rights although FTX tries to provide solutions to this financial crash.
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