Home » FTX founder Sam Bankman-Fried should testify on crypto exchange collapse: Sen. Sherrod Brown

FTX founder Sam Bankman-Fried should testify on crypto exchange collapse: Sen. Sherrod Brown

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FTX co-founder Sam Bankman-Fried should testify before Congress to explain the collapse of his cryptocurrency empire, Ohio Democratic Senator Sherrod Brown told Fox News on Tuesday. told to

Bankman-Fried’s FTX is the world’s third largest cryptocurrency trading company, evaporated in a few days Last week led to a bankruptcy filing and Bankman-Fried’s resignation. The former billionaire is the largest donor to the Democratic Party and is currently facing a criminal investigation over funds mishandled at the company.

Brown argued that the Senate must actively monitor the progress of cryptocurrency companies, but said many senators receive donations from such groups.

“It’s difficult for so many members here, especially bankers and corporates, to take money from crypto companies and sing hymns in the Senate halls,” Brown told Fox. Crack down on crypto companies. “That’s the fundamental problem, and that’s why I’m calling on the Securities and Exchange Commission (SEC) to crack down more and make sure they’re held accountable for what they’ve done.”

Inside the CRYPTO EXCHANGE FTX Collapse: Everything You Need to Know

Sam Bankman-Fried, founder and former CEO of the FTX cryptocurrency derivatives exchange, said: (Jeenah Moon/Bloomberg via Getty Images)

sherrod brown

Speaker Sherrod Brown asks questions during a Senate Banking, Housing and Cities Committee hearing on the Capitol Nov. 18, 2021. (Jim Watson/AFP via Getty Images)

Asked whether Bankman-Fried should testify, Mr Brown said he should “at some point.”

“He’s testified before and I wouldn’t pick him, but I think a lot of them have to explain what they did.

In addition to potential SEC scrutiny, FTX faces criminal investigations in the Bahamas, where it is headquartered.

FTX, the third-largest crypto market in the world when it announced liquidity issues earlier this week, said it would need a massive infusion of cash to survive.

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Binance, the world’s largest cryptocurrency market, initially offered to buy the company, but withdrew the deal after examining FTX’s financial situation.

Reuters, citing two people familiar with the matter, reported that at least $1 billion in customer funds was lost, prompting people to tell the press: Bankman-Fried Secretly Transferred $10 Billion of client funds from FTX to his trading firm Alameda Research.

FTX logo and cryptocurrency

In this image from November 10, 2022, you can see cryptocurrency representations in front of the FTX logo displayed. (Reuters/Dado Ruvic/Illustration)

Two sources told Reuters that Bankman-Fried shared records with other senior executives who revealed the financial hole at a meeting they confirmed had taken place.

The spreadsheet reportedly showed Between $1 billion and $2 billion None of the funds were credited to Alameda’s assets, and the spreadsheet did not show where the funds were being moved.

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FTX is also reportedly facing potential investigations from the US Department of Justice and the US Securities and Exchange Commission.

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