FTX’s Sam Bankman-Fried will testify before the US House of Representatives Committee next week

FTX’s Sam Bankman-Fried will testify before a U.S. House of Representatives committee on Tuesday, the crypto exchange’s founder and congressional panel said on Friday, as regulators investigate the role of the crypto exchange. him after its demise.

The chairwoman of the House Financial Services Committee, Maxine Waters, told Reuters on Thursday that she was prepared to subpoena Bankman-Fried if he did not agree to appear before the panel, which is holding a session. hearing as part of an investigation. FTX.

In a statement late Friday, the board said it would hear from FTX’s newly appointed CEO John Ray and from Bankman-Fried, founder and former CEO of FTX, on Tuesday.

“I still don’t have access to a lot of my data – professional or personal. So there’s a limit to what I can say and I won’t be as helpful as I would like,” Bankman-Fried said. on Friday on Twitter.

“But since the committee still thinks it will be useful, I am willing to testify on the 13th,” he added.

The committee said the combined hearing is scheduled for 10 a.m. ET (8:30 p.m. IST) on Tuesday.

In recent weeks, US authorities have sought information from investors and potential investors in FTX, two sources familiar with the requests told Reuters. Prosecutors and regulators have not charged Bankman-Fried with any crime.

U.S. Justice Department officials met with FTX’s court-appointed supervisors this week to examine whether hundreds of millions of dollars were illegally transferred to the Bahamas, where FTX is headquartered. or not, around the same time the crypto exchange filed for bankruptcy in Delaware, Bloomberg reported late on Friday.

Neither the FTX nor the Justice Department immediately responded to Reuters’ requests for comment on the report.

Fighting Crypto Pioneers

FTX filed for bankruptcy last month and Bankman-Fried stepped down as chief executive officer, after traders withdrew $6 billion (approximately Rs 50,000) from the platform in three days and rival exchanges exchanges abandon a rescue agreement.

Reuters detailed last month the stiff competition between Bankman-Fried and Binance CEO Changpeng Zhao, who in the months leading up to the FTX crash jostled for market share.

Public tension between the two flared up again on Friday following a series of tweets by Zhao.

Zhao said that after Binance, an early investor in FTX, sought to withdraw its holdings more than a year and a half ago, Bankman-Fried made “insults” to the Binance team members.

Binance sold back to FTX its stake in the company last year.

In response, Bankman-Fried wrote: “We started conversations around your acquisition and we decided to do it because it’s important to our business.”

“You threatened to walk away at the last minute if we didn’t kick another ~$75 million (about Rs. 600 crore),” he added. “You don’t even have the right to exit as an investor unless we choose to buy you – the majority of tokens/equity remain locked up.”

“It doesn’t matter now. You also can’t force us to sell if we don’t want to,” Zhao replied.

“It was never a competition or a fight. Nobody won.”

© Thomson Reuters 2022

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