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Sam Bankman-Fried to testify as lawmakers demand answers on FTX fall

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Former FTX CEO Sam Bankman-Fried will appear before Congress to testify about the collapse of the giant $32 billion cryptocurrency exchange.

The House Financial Services Committee said Bankman-Fried will testify Tuesday, Dec. 13, at a hearing titled “FTX Collapse Investigation, Part 1.”

John Ray, FTX’s new CEO who is guiding the company through bankruptcy proceedings, will also testify.

Bankman-Fried, in a series of tweets, said he was “ready to testify” after initially resisting the committee’s request.

“I still don’t have access to a lot of my data, work or personal. So there’s a limit to what I can say, and I won’t be as helpful as I would like,” Bankman said. Fried. wrote. “But as the committee still thinks it would be helpful, I am ready to testify on the 13th.”

Samuel Bankman-Fried, Founder and CEO of FTX, testifies during a Senate Committee on Agriculture, Nutrition, and Forestry hearing on “Digital Assets Review: Risk, Regulation, and Innovation,” on Capitol Hill in Washington, DC.

Saul Loeb/AFP via Getty Images, FILE

Bankman-Fried said he would try to “shed some light” on FTX’s US solvency issues, what he believes led to the crash, and his “own failings.”

“I thought of myself as a model CEO, who wouldn’t get lazy or disconnected,” Bankman-Fried tweeted. “Which made it even more destructive when I did. I’m sorry. I hope people can learn the difference between who I was and who I could have been.”

Committee chair Maxine Waters, D-California, amid Bankman-Fried’s initial resistance to appearing before the committee, tweeted at her, “As you know the collapse of FTX has hurt over a million of people. Your testimony would not only be meaningful to Members of Congress, but is also critical to the American people.”

Lawmakers on both sides of the aisle have said they want to hear from Bankman-Fried after his two companies — FTX and hedge fund Alameda Research — fell and mishandled client funds.

Rep. Patrick McHenry, RN.C., who will chair the committee at the upcoming Congress, said it’s “critical that we hold bad actors accountable so that responsible actors can harness technology to build a more inclusive financial system.” “.

PICTURED: Sam Bankman-Fried during an interview with George Stephanopoulos.

Sam Bankman-Fried during an interview with George Stephanopoulos.

ABC News

Democrat Sherrod Brown, chairman of the Senate Banking Committee, called for Bankman-Fried to appear Dec. 14 to answer “significant unanswered questions” about how customers were treated during the business collapse.

It is unclear whether Bankman-Fried will appear before the committee. Brown, in cooperation with Republican Senator Pat Toomey, said they would issue a subpoena to compel him to appear on Dec. 14 if he did not voluntarily participate.

Brown told Bankman-Fried, “You must answer for the failure of both entities which was caused, at least in part, by the gross misuse of customer funds and wiped out billions of dollars owed to more than a million creditors”.

Sens Democrats Elizabeth Warren and Sheldon Whitehouse have called for a Justice Department criminal investigation into Bankman-Fried for “the disturbing allegations of fraud and illicit behavior.”

Bankman-Fried, in an interview with ABC News’ George Stephanopoulos, denied that he knew “there had been any misuse of client funds.”

“I should have been over this, and I feel really, really bad and I regret not being. A lot of people got hurt. And it’s my fault,” he said. -he declares.

-Allison Pecorin and Lauren Peller of ABC News contributed to this report.

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ABC News

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