05 Dec 2022
On December 13th, FTX's Sam Bankman-Fried agreed to testify before the United States Congress
It's possible that FTX's former CEO, Sam Bankman-Fried, will soon address creditors and investors to shed light on the cryptocurrency exchange's demise.
That is if the recent announcement by Bankman-Fried about his willingness to appear and testify at a U.S. House Financial Services Committee hearing on December 13 turns out to be more than just a publicity gimmick to try and persuade the public that he had not engaged in any wrongdoing.
Recall that Committee chair Maxine Waters invited the founder of FTX to participate in a panel hearing to discuss the circumstances leading up to the abrupt collapse of one of the biggest cryptocurrency exchanges in the world after the platform filed for Chapter 11 bankruptcy.
“We appreciate the openness with which you have discussed what transpired at FTX. Customers, investors, and other parties will benefit from your willingness to engage with the public. In light of this, we invite you to attend our hearing on the 13th,” Waters tweeted.
Bankman-Fried Hints at Panel Appearance
Bankman-Fried, for his part, graciously accepted the invitation on Twitter and stated that he would be willing to assist in making the hearing more fruitful.
The former FTX CEO said:
"Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain."
SBF clarified he is still determining if that will happen on the specific date; he was invited to attend the hearing but assured that if it does, he will be there to give his side of the story. He seemed to be playing it cool and avoiding rushing into legal commitment.
In a series of interviews last week, Bankman-Fried categorically denied involvement in any fraudulent activity that might have complicated the events leading to his company's unexpected demise, costing investors and creditors billions of dollars.
A Glimmer Of Hope For Some FTX Clients?
Despite all the negative press the defunct crypto exchange platform has received, some of its users may soon be able to access funds locked up not too long ago.
The company's Japanese subsidiary recently announced that the new FTX trading management team had already given the go-ahead for their plans to resume withdrawal services.
FTX Japan added that as it continues to work to help its customers recover their assets, it is taking into account controls, security, audits, reviews, and reconciliations.
If this is successful, it will be a novel development because, traditionally, investors never get their money back when a cryptocurrency exchange fails.
The entire cryptocurrency community is waiting for Bankman-Fried's testimony at the congressional hearing and what it will have to say about the whereabouts of the investors' money.
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