Sam Bankman-Fried, the founder and former CEO of the now-defunct cryptocurrency exchange FTX. He said on Monday that he would provide a recorded statement during a hearing on the company’s demise on Tuesday held by the U.S. House Financial Services Committee.
Last month, FTX sought U.S. bankruptcy protection. Additionally, Bankman-Fried resigned as CEO, sparking a surge of public calls for more regulation of the cryptocurrency sector. Traders hurried to remove $6 billion from the struggling cryptocurrency trading platform in only 72 hours. While rival exchange Binance abandoned a potential rescue arrangement, making it difficult for the firm to obtain money to prevent collapse.
U.S. authorities recently requested information from FTX investors and potential investors. It was informed two persons familiar with the inquiries who spoke to Reuters. Bankman-Fried has not been accused of any crimes by the prosecution or the authorities. The hearing on Tuesday will be Bankman-first-ever Fried’s public appearance before American legislators.
Bankman-Fried stated he would be “phoning in” to the hearing from the Bahamas
Bankman-Fried stated he would be “phoning in” to the hearing from the Bahamas during a Twitter Spaces event on Monday with the Twitter account Unusual Whales.
He claimed that it is crucial for him to stay in the Bahamas, where FTX is based, adding that it is challenging for him to relocate and travel at the moment since “the paparazzi effect is powerful.”
A representative for Bankman-Fried acknowledged that he wouldn’t be giving a live testimony during the session. John Ray, the CEO of FTX, will also appear before the committee. However, whether he will provide a live or recorded testimony is unclear.
On Tuesday, December 13, at 10 a.m. ET (1500 GMT), a hybrid hearing will be placed.
Bankman-Fried said he waited to accept to appear until the committee’s leadership realized “that they were not going to be receiving a lot of the answers they’re searching for,” he said, speaking at the Twitter Spaces event.
Given that he no longer had access to FTX’s internal information, Bankman expressed concern that his testimony would likely be “underwhelming” since he wouldn’t be able to confidently “answer things that I would like to be able to, and honestly, really should be able to.”
On Wednesday, December 14, the Senate Banking Committee will convene a hearing regarding the demise of FTX. According to Bankman-Fried, he is not expected to attend.
If the chair and ranking member feel that it is crucial that I attend the hearing. Bankman-Fried stated, “I am open and eager to talk with them about the hearing.