Raja Krishnamoorthi, chairman of the House Oversight Committee’s subcommittee on economic and consumer policy, has asked FTX to turn over documents and information as part of its investigation into the crypto exchange’s collapse, Bloomberg reported. Friday, November 17.
“I am extremely disturbed by the recent news surrounding the collapse of FTX Trading Ltd. (FTX), including its affiliated entity FTX US, and the potentially significant harm that the bankruptcy of FTX will cause to US consumers and investors,” wrote Krishnamoorthi in a letter to former FTX CEO Sam Bankman-Fried and John J. Ray III, the new CEO and Director of Restructuring.
Krishnamoorthi asks for detailed information on the liquidity crisis which led to the collapse of FTX and the decision to declare bankruptcy. He asked what the company plans to do to “ensure that every dollar goes back to the American consumers who have trusted your company.”
The subcommittee requested that the requested information and documents be submitted by December 1.
The House Financial Services Committee is also undertaking a bipartisan hearing on the matter that will begin in December.
This hearing will focus on the platform’s meltdown and its broader implications for the digital asset ecosystem, according to a press release on Wednesday, November 16.
See more : House Financial Services Committee Announces December Hearing on FTX Collapse
“The committee expects to hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX and related entities, among others,” the statement read.
The hearing is called by Committee Chair Maxine Waters (D-Calif.) and Ranking Member Patrick McHenry (RN.C.).
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