July 15, 2024


Technological development

Sam Bankman-Fried says he will testify to Congress about FTX collapse next week

Sam Bankman-Fried says he will testify to Congress about FTX collapse next week

Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, has agreed to testify to Congress following the collapse of his crypto exchange.

In a tweet, Bankman-Fried announced that we would be willing to testify before the House Financial Services Committee next week. The disgraced former CEO said that “I still do not have access to much of my data — professional or personal. So there is a limit to what I will be able to say, and I won’t be as helpful as I’d like. But as the committee still thinks it would be useful, I am willing to testify on the 13th.”

FTX, which was one of the largest and most popular cryptocurrency exchanges, suddenly collapsed last month, causing widespread panic and significant financial losses for its customers. Bankman-Fried, who was running the crypto exchange up until its collapse, was seen as a hero for the crypto community until the “run on the bank” over its FTT token.

After customers rushed to get their money from the exchange, the entire company collapsed. FTX and Alameda Research, the company’s trading firm, filed for Chapter 11 bankruptcy on November 11, and Bankman-Fried stepped down as CEO.

The Committee has not yet announced the specific date or time of Bankman-Fried’s testimony, but it will likely take place next week if Bankman-Fried is true to his word. The former CEO has been on a bit of a press tour since the collapse, appearing at a number of interviews and events remotely, so it wouldn’t be surprising to see him show up digitally for the congressional testimony as well.

In the meantime, the investigation into the collapse of FTX continues, with authorities and industry experts working to determine the exact cause and to identify any potential wrongdoing. Most are looking at the company as a fraud case. The outcome of the investigation could have significant implications for the future of the cryptocurrency industry, as well as for the individuals and organizations involved.

While all of this is happening, an FTX-focused film is already in the works, with Michael Lewis bringing his version to Apple TV Plus.