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The U.S. House Financial Services Committee has scheduled a hearing on the FTX collapse, and Sam Bankman-Fried is unlikely to testify due to his unpreparedness.
In response to Financial Services Committee Chair Maxine Waters’s official invitation to testify at the hearing scheduled on Dec 13, Sam Bankman-Fried tweeted that he probably won’t participate due to lacking a deep understanding of why FTX collapsed:
Last month, the U.S. House Financial Services Committee announced a hearing entitled “Investigating the Collapse of FTX, Part 1” to find the reasons behind the collapse of one of the largest exchanges, FTX, simultaneously alleging Sam Bankman-Fried played a lead role in misappropriating customer funds. Representatives of Binance and Alameda Research were also invited to the hearing.
Related: CFTC learns a lesson from FTX collapse.
All of this comes amidst a backdrop of many unhappy crypto-investors and entrepreneurs that Sam Benkman-Fried is getting away with his FTX failure due to a not-thorough investigation by the authorities. Benkman-Fried gave mainstream media interviews and recently spoke at the NYT Summit, where he apologized for a full hour and made it clear that many details of the collapse were kept from him until the last moment.
Last month, Reuters reported that Bankman-Fried secretly transferred at least $4B of FTX client funds to Alameda Research. Sam responded to the publication as it was a misreading of the “confusing internal labeling.” Now the amount of secretly moved funds has grown to $10B.
Related: FTX CEO Transferred Customer Deposits to Help His Other Company
In the meantime, the new FTX CEO, John Ray III, shared with CNBC the mess of business that Bankman-Fried left behind:
In my 40 years of legal and restructuring experience, I had never seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.
Related: Sam Bankman-Fried writes an explanation letter to employees
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