The US House Financial Services Committee plans to investigate the FTX collapse, according to a joint press release issued by committee chair Maxine Waters and Representative Patrick McHenry. In addition, a congressional hearing is scheduled for December, according to the joint statement.
Bipartisan congressional hearing to be held in December on fallout from FTX
On Wednesday, November 16, 2022, Congresswoman Maxine Waters (D-CA) and Representative Patrick McHenry (R-N.C.) released a joint statement saying that a bipartisan hearing has been announced that will investigate the “collapse of FTX and the consequences for the digital asset ecosystem”.
The US House Financial Services Committee “looks forward to hearing from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and related entities, among others,” Waters and McHenry’s joint statement said.
“The FTX crash caused tremendous damage to over a million users, many of whom were ordinary people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to have it all disappear in a matter of seconds,” said Congresswoman Waters. in one sentence. The California Democrat added:
Sadly, this event is just one of many examples of cryptocurrency platforms crashing over the past year. This is why it is extremely urgent that I, along with my fellow Ranking Member McHenry, announce the Committee's intention to hold a hearing to investigate the FTX collapse.
Waters also led research and reporting on the stock market meme event and Gamestop last year. Regarding the FTX meltdown, Republican Rep. McHenry emphasized that the House Financial Services Committee plans to get to the bottom of the FTX fiasco.
“Oversight is one of the most critical functions of Congress and we need to get to the bottom of it for FTX customers and the American people,” said McHenry. “It is essential that we hold bad actors accountable so that those responsible can leverage technology to build a more inclusive financial system,” added McHenry.
FTX filed for bankruptcy on November 11, 2022, after having previously been a company valued at $32 billion. Furthermore, after the record was filed, on the same day, it was suspected that nearly $500 million worth of crypto tokens were stolen from FTX wallets.