Sam Bankman-Fried, the Founder of beleaguered crypto exchange, FTX, said on Friday that 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 much of his professional and personal data.
1) 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.
— SBF (@SBF_FTX) December 9, 2022
But as the committee still thinks it would be useful, I am willing to testify on the 13th. https://t.co/KR34BsNaG1
Maxine Walters, the 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.”
.@SBF_FTX, we appreciate that you've been candid in your discussions about what happened at #FTX. Your willingness to talk to the public will help the company's customers, investors, and others. To that end, we would welcome your participation in our hearing on the 13th.
— Maxine Waters (@RepMaxineWaters) December 2, 2022
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.
Rep. Waters, and the House Committee on Financial Services:
— SBF (@SBF_FTX) December 4, 2022
Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.
I'm not sure that will happen by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt
However, in response to a 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.”
.@SBF_FTX,
— Maxine Waters (@RepMaxineWaters) December 5, 2022
Based on your role as CEO and your media interviews over the past few weeks, it’s clear to us that the information you have thus far is sufficient for testimony. (1/3) https://t.co/YUVVjOkC40
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.
Ms Waters, with all due respect – let's stop flirting with the inevitable outcome and cut the crap.
— Genia🔥 (@Genia_xx) December 5, 2022
Begin the process of extradition to bring him back to US soil where he can be tried and properly judged for his gross and fraudulent misconduct.
Send a subpoena. pic.twitter.com/hsroD7ZaWMwhy are you tweeting at him?
— Nicole Maffeo (@nicole_maffeo) December 5, 2022
send a subpoena
‘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. In addition, he was at fault for the company’s record-keeping of digital asset custody, investment activities and decision-making under the former CEO.
ON top of that, Finance Magnates reported earlier in the week that Bankman-Fried had hired Mark Cohen, the 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 the 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. Furthermore, the once-beloved cryptocurrency exchange is facing a similar investigation in the Bahamas.
