Top US Lawmaker Says FTX Hearing Will Continue Without Sam Bankman-Fried
A hearing by the House Financial Services Committee on the collapse of crypto exchange FTX will go on as planned on Tuesday even without the firm's former CEO and founder Sam Bankman-Fried, who has been arrested.
Bankman-Fried was taken into custody by Bahamas police late on Monday. As soon as the island nation got word that the U.S. had charged the former CEO, reportedly for fraud and money laundering, they arrested him, expecting a request for extradition.
Maxine Waters (D-Calif.), Chairwoman of the U.S. House Financial Services Committee, which will hold the hearing, said she was "surprised" to hear of Bankman-Fried's arrest and "disappointed" that he would therefore not attend the hearing.
"Although Mr. Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr. Bankman-Fried about the actions that’ve harmed over one million people, and wiped out the hard-earned life savings of so many," Waters said.
Bankman-Fried, who has given numerous media interviews since the implosion of his empire despite being under criminal investigation, agreed to participate in the hearing on Dec. 9.
FTX, once a darling of Wall Street, Washington, and the media , filed for bankruptcy on Nov. 11, after a CoinDesk article revealed that much of its sister firm Alameda Research's balance sheet was made up of FTT tokens, which are issued by FTX. That triggered a bank run on its deposits, which eventually led to the exchange's insolvency.