House Financial Services Committee holds hearing on FTX collapse

#SBF #FTX #yahoofinance

The implosion of cryptocurrency exchange FTX has drawn the attention of politicians, with the House and the Senate set to hold hearings on the mess on Tuesday and Wednesday, respectively. The House’s Committee on Financial Services is first up at 10AM ET with a hearing titled, “Investigating the Collapse of FTX, Part I.”

Last month, Binance agreed to buy FTX, which was facing a liquidity crisis. Binance backed out a day later after taking a look at FTX’s books. FTX then filed for bankruptcy protection and Bankman-Fried stepped down as CEO.

Ray, a corporate restructuring veteran who oversaw Enron’s bankruptcy process, said FTX was in an “unprecedented” mess and that he’d never “seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information.” Ray also claimed that Bankman-Fried has been making “erratic and misleading public statements” about FTX. The former CEO has given several interviews since leaving the post.

The collapse of FTX, which has dragged down other players in the crypto industry, could impact more than a million creditors. Prosecutors in the US are said to be investigating Bankman-Fried for possible fraud.

For more on this article, please visit:
https://au.news.yahoo.com/ftx-hearings-sbf-house-congress-senate-133021258.html
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