Cryptocurrency

US financial committee to hold hearing on FTX collapse in December

The United States House of Representatives Financial Services Committee hold a hearing FTX collapsed in December.

According to a press statement, the committee will “seek input from relevant companies and individuals, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and related entities.”

The press release also said the hearing would focus on “broader implications for the digital asset ecosystem.”

Commenting on the development, Chairman Maxine Waters (D-California) said:

โ€œThe FTX collapse took a toll on over a million users, many of them everyday people who invested their hard-earned savings in the FTX cryptocurrency exchange, but in a matter of seconds All gone. Unfortunately, this event is just one of many examples of cryptocurrency platforms that have collapsed in the past year alone.

Congressman Patrick McHenry (RN.C.) said Congress “must get to the bottom of this matter for FTX customers and the American people.” He added, “It is imperative to hold the bad guys accountable so that responsible players can use technology to build a more inclusive financial system.”

UK lawmakers have already held inquiries about Binance’s role in the eventual demise of FTX.

Meanwhile, Reuters report Sam Bankman-Fried has been sued in a US court by an investor who claims the company’s yielding cryptocurrency accounts violate Florida law.

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