FTX’s Bankman-Fried says he’ll testify remotely at congressional listening to By Reuters

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© Reuters. FILE PHOTO: The emblem of FTX is seen on the entrance of the FTX Arena in Miami, Florida, U.S., November 12, 2022. REUTERS/Marco Bello/File Photo

By Hannah Lang

(Reuters) -Sam Bankman-Fried, the founder and former CEO of now-bankrupt crypto trade FTX, stated on Monday he would testify remotely at Tuesday’s U.S. House Financial Services Committee listening to to look at the collapse of the corporate.

FTX filed for U.S. chapter safety final month and Bankman-Fried resigned as chief govt, triggering a wave of public calls for for larger regulation of the cryptocurrency trade.

The distressed crypto buying and selling platform struggled to boost cash to stave off collapse as merchants rushed to withdraw $6 billion from the platform in simply 72 hours and rival trade Binance deserted a proposed rescue deal.

In current weeks, U.S. authorities have sought info from traders and potential traders in FTX, two sources with data of the requests advised Reuters. Prosecutors and regulators haven’t charged Bankman-Fried with any crime.

Tuesday’s listening to would be the first time Bankman-Fried seems publicly earlier than U.S. lawmakers.

In a Twitter Spaces occasion on Monday with Twitter account Unusual Whales, Bankman-Fried stated he could be “calling in” to the listening to from the Bahamas.

He stated that it was necessary for him to stay within the Bahamas, the place FTX is headquartered, and that it’s tough for him “to maneuver proper now and journey as a result of the paparazzi impact is kind of giant.”

A spokesperson for Bankman-Fried confirmed that he wouldn’t be testifying on the listening to in particular person. FTX CEO John Ray may even seem earlier than the committee, though it’s not clear if he’ll testify nearly or in particular person.

The hybrid listening to is scheduled for 10 a.m. ET (1500 GMT) on Tuesday, Dec. 13.

Speaking to the Twitter Spaces occasion, Bankman-Fried stated he waited to comply with testify earlier than the committee’s management understood “that they weren’t going to be getting a whole lot of the solutions they’re on the lookout for,” he stated.

Bankman-Fried warned that his testimony was more likely to be “underwhelming” as a result of he would not be capable of confidently “reply questions that I might really need to have the ability to, and admittedly, actually ought to be capable of,” provided that he now not has entry to inner info at FTX.

The Senate Banking Committee may even maintain a listening to on FTX’s collapse on Wednesday, Dec. 14, wherein Bankman-Fried says he isn’t scheduled to look.

“I’m open and keen to have a dialog with the chair and the rating member concerning the listening to in the event that they imagine it is necessary that I attend,” stated Bankman-Fried.

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