FTX creditors and investors may soon have the chance to hear former big boss Sam Bankman-Fried explain what really went wrong with the collapse of the cryptocurrency exchange platform.
That is if the recent pronouncement of Bankman-Fried about his willingness to appear and testify in a hearing by the U.S. House Financial Services Committee this December 13 proves to be more than just a publicity stunt to try and convince the public that he had not committed any kind of wrongdoing.
It can be recalled that following the platform’s filing for Chapter 11 Bankruptcy, Committee chair Maxine Waters extended an invitation for the founder of FTX to join a panel hearing to shed light on the events that culminated in the sudden implosion of one of the world’s largest crypto exchanges.
“We appreciate that you’ve been candid in your discussions about what happened at FTX. Your willingness to talk to the public will help the company’s customers, investors and others. To that end, we would welcome your participation in our hearing on the 13th,” Waters wrote on Twitter.
.@SBF_FTX, we appreciate that you’ve been candid in your discussions about what happened at #FTX. Your willingness to talk to the public will help the company’s customers, investors, and others. To that end, we would welcome your participation in our hearing on the 13th.
— Maxine Waters (@RepMaxineWaters) December 2, 2022
Bankman-Fried Teases Panel Appearance
Bankman-Fried, for his part, politely responded to the Twitter invitation and expressed his willingness to cooperate for the hearing to be more productive.
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.”
Rep. Waters, and the House Committee on Financial Services:
Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.
I’m not sure that will happen by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt
— SBF (@SBF_FTX) December 4, 2022
Seemingly playing it cool and avoiding rushing into any kind of legal commitment, SBF clarified he is not sure if that will happen on the particular date he was invited to attend the hearing but nonetheless assured that if it does, he will be there to tell his side of the story.
Last week, in a series of interviews, the Bankman-Fried categorically denied involvement in any kind of fraudulent activity which might have aggravated the circumstances that led to the surprising downfall of his company which caused investors and creditors lose billions of dollars.
Image: Capital.com
A Speck Of Hope For Some FTX Customers?
In the face of all the negativity that surrounds the failed crypto exchange platform, some of its clients may soon have the opportunity to get back their funds that were locked up not that long ago.
Just recently, the Japanese subsidiary of the company said their plans for the resumption of withdrawal services have already been approved by the new management team of FTX trading.
FTX Japan added it is taking into consideration controls, security, audit, reviews and reconciliations as it continues to move forward with its work to allow their customers to regain their assets.
If this succeeds, it will be a unique development as it has always been the norm that investors don’t get back the sum of money they lose when a crypto exchange collapses.
Meanwhile, the entire crypto community awaits the Congress hearing and what Bankman-Fried will have to say about the status of the investors’ money.
CHZ total market cap at $821 billion on the daily chart | Featured image: [File: Alex Wong/Getty Images via AFP], Chart: TradingView.com
