FTX founder Sam Bankman-Fried won’t be showing earlier than Congress Tuesday after Bahamian authorities arrested him Monday night time on the request of the U.S. Authorities.
Rep. Maxine Waters, D-Calif., chair of the Home Monetary Companies Committee, stated in an announcement Monday night time that Bankman-Fried won’t be testifying earlier than the committee.
Waters stated she was stunned to study of his arrest.
“The American public deserves to listen to immediately from Mr. Bankman-Fried in regards to the actions that’ve harmed over a million folks, and worn out the hard-earned life financial savings of so many,” she stated. “The general public has been ready eagerly to get these solutions beneath oath earlier than Congress, and the timing of this arrest denies the general public this chance.”
John J. Ray III, FTX’s present CEO, stays a witness on the listening to and can testify.
Bankman-Fried, in a Friday Twitter publish, confirmed his plans to look on the Capitol, saying he would attempt to make clear what led to the crash and his personal failings as the previous CEO.
A Monday assertion from the Royal Bahamas Police Power says he’s additionally anticipated to look in native courtroom on Tuesday.
“I nonetheless shouldn’t have entry to a lot of my information – skilled or private. So there’s a restrict to what I can say, and I will not be as useful as I might like,” Bankman-Fried, also referred to as SBF, stated on Twitter. “I’ll attempt to be useful in the course of the listening to.”
He has but to reply to a request to look earlier than a separate listening to from the Senate Committee on Banking, Housing and City Affairs on Thursday.
This is what to find out about FTX’s founder and collapse forward of Tuesday’s listening to, which is obtainable to stream on the committee’s web site.
Bankman-Fried arrested:FTX founder Sam Bankman-Fried arrested in Bahamas, indicted in New York, prosecutors say
When did FTX collapse?
On Nov. 11, FTX filed for chapter and Bankman-Fried resigned as CEO.
What’s the FTX scandal?:How the celebrity-endorsed crypto big collapsed into chaos
What triggered FTX to break down?
FTX, as soon as one of many largest crypto exchanges on the earth, collapsed after a CoinDesk article revealed Alameda Analysis – a buying and selling agency additionally owned by Bankman-Fried – had a steadiness sheet filled with FTX’s change token, FTT.
Binance, a competing cryptocurrency change, introduced plans to promote its FTT in gentle of the findings. This triggered mass withdrawals from FTX. The market worth of FTT crashed and FTX entered a liquidity disaster.
What did Sam Bankman-Fried do?
Bankman-Fried now faces allegations of misappropriating billions price of buyer investments.
Whereas FTX promised clients to not use their cash for buying and selling, Reuters reported that Bankman-Fried secretly transferred $10 billion of FTX’s buyer funds to Alameda earlier than its collapse.
The previous CEO has maintained that he by no means supposed to defraud anybody, together with FTX’s estimated 1.2 million U.S. clients.
John J. Ray III, who changed Bankman-Fried as CEO, stated FTX didn’t preserve acceptable books and data or safety controls and used software program to hide the misuse of buyer funds.
“By no means in my profession have I seen such an entire failure of company controls and such an entire absence of reliable monetary info,” Ray stated in a courtroom submitting, including that the scenario is “unprecedented.”
Sam Bankman-Fried:Former CEO of FTX crypto change says he’ll testify earlier than Congress
How a lot did FTX lose?
Reuters in November reported that $10 billion of shopper cash was transferred between FTX and Alameda.
Bankman-Fried later stated $8 billion in buyer funds are lacking and blamed accounting errors. Courtroom paperwork present the corporate didn’t have an accounting division.
FTX in November stated it owes cash to greater than 100,000 folks.
Why was FTX so in style?
FTX was one of many largest and most well-known crypto exchanges. You possibly can discover its title connected to an NBA stadium or in commercials with celebrities like comic Larry David and NFL quarterback Tom Brady.
What’s Sam Bankman-Fried’s web price?
As soon as price $26.5 billion, Bankman-Fried advised Axios final month that he had $100,000 left in his checking account.
“Am I allowed to say a unfavorable quantity?” he advised Axios. “It is difficult. Mainly all the things I had was simply tied up within the firm.”
Report:Former billionaire Sam Bankman-Fried says he is right down to $100,000 in checking account
What does FTX stand for?
FTX is shorthand for “Futures Change.”
Is FTX publicly traded?
No, FTX is a non-public firm.
You possibly can comply with USA TODAY reporter Bailey Schulz on Twitter @bailey_schulz and subscribe to our free Day by day Cash e-newsletter right here for private finance ideas and enterprise information each Monday by means of Friday.
