Sam Bankman-Fried ‘Willing’ to Testify before US House Panel on Dec. 13


Sam Bankman-Fried, the
Founder of beleaguered crypto exchange, FTX, on Friday said he is willing to
testify before the U.S. House Financial Services Committee on December 13 (next
week Tuesday).

The Founder, who
resigned as the CEO of the
crypto exchange in mid-November following its
collapse, however, noted “there
is a limit to what I will be able to say” as he does not have access to many of
his professional and personal data.

Maxine Walters,
Chairwoman of the US House of Representatives Financial Services Committee,
first tweeted a public invitation to the hearing at Bankman-Fried last Friday,
noting that the former CEO’s “willingness to talk to the public will help the
company’s [FTX] customers, investors, and others.”

Bankman-Fried was
initially reluctant to attend the hearing. On Sunday, he tweeted to explain that he was still learning and reviewing what happened at FTX and would feel
confident to appear before the Committee once he was done doing so.

However, in a response
tweet on Monday, Walters, who is also the US representative for California’s
43rd congressional district argued that Bankman-Fried’s position as CEO and
granted media interviews in the past weeks “is sufficient for testimony.”

She further argued, “As
you know, the collapse of FTX has harmed over one million people. Your
testimony would not only be meaningful to Members of Congress but is also
critical to the American people.

“It is imperative that
you attend our hearing on the 13th, and we are willing to schedule continued
hearings if there is more information to be shared later.”

Meanwhile, some
stakeholders in the cryptocurrency community express dissatisfaction with
Walters’ handling of Bankman-Fried’s invitation to Congress, even as some argued that he should be
subpoenaed.

‘Complete Failure of
Corporate Controls’

Meanwhile, John Ray III,
the new CEO of FTX, recently described the running of the FTX Group under Sam
Bankman-Fried as “a
complete failure of corporate controls,” adding that the exchange’s business environment under the Founder
was “unprecedented.”

Ray in an FTX
court filing
presented before the
United States Bankruptcy Court for the District of Delaware criticized the
governance structure, cash and human resources management, and disbursement
controls of the FTX Group under Bankman-Fried. He also faulted the company’s
record-keeping of digital asset custody, investment activities, and
decision-making under the former CEO.

Meanwhile, Finance
Magnates
reported earlier in the week that Bankman-Fried has hired
Mark Cohen, Co-Founder and
Managing Partner at Cohen & Gresser law firm, as his attorney. Similarly, Caroline
Ellison, the former CEO of Alameda Research, engaged the services of
Washington-based firm, Wilmer Cutler Pickering Hale and Dorr.

These come as reports
emerge that regulators in the United States are carrying out potential civil and criminal
investigations on FTX activities. However, Bankman-Fried has not been charged with any crime. The once-beloved cryptocurrency exchange is
also facing
a similar investigation in the Bahamas.

Sam Bankman-Fried, the
Founder of beleaguered crypto exchange, FTX, on Friday said he is willing to
testify before the U.S. House Financial Services Committee on December 13 (next
week Tuesday).

The Founder, who
resigned as the CEO of the
crypto exchange in mid-November following its
collapse, however, noted “there
is a limit to what I will be able to say” as he does not have access to many of
his professional and personal data.

Maxine Walters,
Chairwoman of the US House of Representatives Financial Services Committee,
first tweeted a public invitation to the hearing at Bankman-Fried last Friday,
noting that the former CEO’s “willingness to talk to the public will help the
company’s [FTX] customers, investors, and others.”

Bankman-Fried was
initially reluctant to attend the hearing. On Sunday, he tweeted to explain that he was still learning and reviewing what happened at FTX and would feel
confident to appear before the Committee once he was done doing so.

However, in a response
tweet on Monday, Walters, who is also the US representative for California’s
43rd congressional district argued that Bankman-Fried’s position as CEO and
granted media interviews in the past weeks “is sufficient for testimony.”

She further argued, “As
you know, the collapse of FTX has harmed over one million people. Your
testimony would not only be meaningful to Members of Congress but is also
critical to the American people.

“It is imperative that
you attend our hearing on the 13th, and we are willing to schedule continued
hearings if there is more information to be shared later.”

Meanwhile, some
stakeholders in the cryptocurrency community express dissatisfaction with
Walters’ handling of Bankman-Fried’s invitation to Congress, even as some argued that he should be
subpoenaed.

‘Complete Failure of
Corporate Controls’

Meanwhile, John Ray III,
the new CEO of FTX, recently described the running of the FTX Group under Sam
Bankman-Fried as “a
complete failure of corporate controls,” adding that the exchange’s business environment under the Founder
was “unprecedented.”

Ray in an FTX
court filing
presented before the
United States Bankruptcy Court for the District of Delaware criticized the
governance structure, cash and human resources management, and disbursement
controls of the FTX Group under Bankman-Fried. He also faulted the company’s
record-keeping of digital asset custody, investment activities, and
decision-making under the former CEO.

Meanwhile, Finance
Magnates
reported earlier in the week that Bankman-Fried has hired
Mark Cohen, Co-Founder and
Managing Partner at Cohen & Gresser law firm, as his attorney. Similarly, Caroline
Ellison, the former CEO of Alameda Research, engaged the services of
Washington-based firm, Wilmer Cutler Pickering Hale and Dorr.

These come as reports
emerge that regulators in the United States are carrying out potential civil and criminal
investigations on FTX activities. However, Bankman-Fried has not been charged with any crime. The once-beloved cryptocurrency exchange is
also facing
a similar investigation in the Bahamas.





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