US House Committee to Investigate and Hold Bipartisan Hearing on FTX Collapse – According to a joint press release from the committee’s chair Maxine Waters and representative Patrick McHenry, the US House Financial Services Committee intends to look into the FTX collapse. Furthermore, the joint statement mentions that a congressional hearing will happen in December. Representative Patrick McHenry (R-N.C.) and Congresswoman Maxine Waters (D-CA) released a joint statement on Wednesday, Nov. 16, 2022, announcing a bipartisan hearing to look into the collapse of FTX and the broader consequences for the digital asset ecosystem.
The joint statement from Waters and McHenry said that the U.S. House Financial Services Committee expects to hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and connected corporations, among others. In a statement, congressman Waters claimed that the collapse of FTX has presented great harm to over one million users, many of whom were ordinary folks who placed their hard-earned funds into the FTX cryptocurrency exchange, only to watch it all evaporate within a matter of seconds.
The Democrat from California added: “Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year. That’s why it is with great urgency that I, along with my colleague Ranking Member McHenry, announce the Committee’s intention to hold a hearing to investigate the collapse of FTX.” Waters also took the lead in the investigation and reporting of the Gamestop market incident and meme stock last year. Republican congressman McHenry made a point of stating that the House Financial Services Committee intends to investigate the FTX collapse.
For the benefit of FTX’s customers and the American people, McHenry added, “Oversight is one of Congress’ most critical functions and we must get to the bottom of this for FTX’s customers and the American people”. In order for responsible participants to use technology to create a more inclusive financial system, McHenry continued, “It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.” FTX filed for bankruptcy protection on Nov. 11, 2022, after it was once a firm that had a $32 billion valuation. Furthermore, after the filing was registered, the same day nearly $500 million in crypto tokens were suspected to be stolen from FTX wallets.
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