Sam Bankman-Fried is facing an onslaught of legal repercussions over his involvement in the collapse of FTX, the cryptocurrency trading platform he founded in 2019, with congressional investigations set to take off over the course of the upcoming weeks.
The Senate Agriculture Committee, which is tasked with oversight of the Commodity Futures Trading Commission (CFTC), is planning to hold a hearing on the rapid collapse of FTX this week, with the office of GOP Ranking Member John Boozman of Arkansas giving FOX Business details about the hearing.
Boozman’s office said the hearing will feature CFTC, Chairman Rostin Behnam and focus on “the need to bring transparency and accountability to the crypto market.”
“We have previously held hearings on the CFTC’s role in regulating digital assets, and Chairwoman Stabenow and Ranking Member Boozman introduced legislation on it, but the committee is revisiting the issue in light of the events of the past few weeks,” a spokesperson for Boozman said in a statement.
The general population was already weary about Crypto to begin with, and now with such a scandal, average investors are looking elsewhere to put their money. In fact, celebrities such as Tom Brady and Shaquille O Neal may be part of the liability.
Eric Snyder, head of the bankruptcy department at the law firm Wilk Auslander said:
“As far as I know, they have two assets — the goodwill value of the exchange and the value of their FTT coins.” Eric is referencing the cut that FTX customers should still be entitled to. However, it is too early to predict what the end of the bankruptcy will look like.
On Monday, Changpeng Zhao, the CEO of FTX competitor Binance, tried to soothe his audience in the crypto world:
“It’s obvious that people are jittery,” said Zhao, known as CZ, “I want to say, short-term, it is painful. But I think this is actually good for the industry long-term.”
To learn more, here’s the Valuetainment podcast on FTX:
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