The United States House Financial Services Committee is reportedly planning an official hearing on the recent collapse of the cryptocurrency exchange platform FTX.
According to a new Wall Street Journal report, the committee’s leaders, Democratic Representative Maxine Waters of California and Republican Representative Patrick McHenry of North Carolina, plan to hold a hearing in December to investigate FTX’s demise.
Members of the committee expect to hear testimony from FTX competitor Binance, FTX founder and former CEO Sam Bankman-Fried, and Alameda Research, FTX’s trading branch, about what happened to the crypto exchange.
According to the Wall Street Journal, committee chairperson Waters stated in an email,
Bankman-Fried was recently accused of mismanaging the company’s funds by lending over $10 billion in customer deposits to Alameda Research.
FTX declared bankruptcy last week after failing to reach a financial bailout agreement with Binance CEO Changpeng Zhao.
Representative McHenry believes it is critical that lawmakers investigate what happened to FTX and hold those responsible accountable.
Earlier this week, veteran hedge fund manager Anthony Scaramucci pleaded with Bankman-Fried and his family to get ahead of the situation and appear before regulators to reveal the truth.
