The chairman of a US House of Representatives subcommittee has lobbied the former and current CEOs of cryptocurrency exchange FTX requesting documents related to the finances of the exchange.
“FTX customers, former employees and the public deserve answers,” Raja Krishnamoorthi, chairman of the Subcommittee on Economic and Consumer Policy, wrote in a Nov. 18 letter to former FTX CEO Sam Bankman-Fried and to the exchange’s current CEO, John J. Ray III, who took over after FTX’s bankruptcy filing.
Krishnamoorthi added that the subcommittee was “seeking detailed information on the significant liquidity problems facing FTX, the firm’s abrupt decision to file for bankruptcy and the potential impact of these actions on clients using its exchange.”
He insisted that the exchange hand over a ton of information related to its finances, including explanations of its liquidity problems, balance sheets from before its collapse in early November, its current cryptocurrency holdings, and a plan for how it will pay off the exchange. the clients.
Krishnamoorthi also requested information on who held the exchange’s finances, any input FTX received from Alameda Research CEO Caroline Ellison, and a description of any “back doors” that may have been used to move funds under the auditors’ noses. or other FTX departments.
Current and former FTX bosses were reminded to submit documentation as part of an August 30 request to Bankman-Fried for information on steps FTX is taking to combat fraud and scams.
Similar letters were sent to cryptocurrency exchanges Binance.US, Coinbase, Kraken, and KuCoin.
The subcommittee set a deadline of December 1 for FTX to obtain requested documentation to help determine “what went wrong at FTX” and what measures Congress could enact to ensure that the cryptocurrency industry “is properly regulated and investors be protected.”
The subcommittee’s deadline coincides with the announcement, on November 16, of a hearing scheduled for December by members of the US House Financial Services Committee, which will explore the collapse of FTX and the “broader consequences for the digital asset ecosystem.
Krishnamoorthi’s letter follows similar demands made on November 16 by Senators Elizabeth Warren and Richard Durbin, who wrote to Bankman-Fried and Ray asking for a similar number of documents related to the FTX collapse.
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