Lawmakers to hold FTX hearing despite former CEO arrest

Dec 11, 2022, 10:49 PM | Updated: Dec 12, 2022, 6:32 pm
In this photo taken with a drone, the FTX logo is seen on the roof of the FTX Arena on Wednesday, D...

In this photo taken with a drone, the FTX logo is seen on the roof of the FTX Arena on Wednesday, Dec. 7, 2022, in Miami. The House Financial Services Committee holds a hearing on Tuesday on the collapse of cryptocurrency exchange FTX. (AP Photo/Rebecca Blackwell)

(AP Photo/Rebecca Blackwell)

NEW YORK (AP) — The House Financial Services Committee plans to hold a hearing into the collapse of crypto exchange FTX on Tuesday, but its star witness will be missing.

Sam Bankman-Fried was scheduled to testify in front of the House Financial Services Committee, along with the company’s current CEO, John Ray III. However Bankman-Fried was arrested in the Bahamas late Monday, and U.S. authorities said they plan to unseal charges against him on Tuesday.

FTX filed for bankruptcy on Nov. 11, when the firm ran out of money after the cryptocurrency equivalent of a bank run. The collapse of crypto’s second-largest exchange has garnered worldwide attention, and Bankman-Fried is now facing charges by U.S. authorities and likely Bahamian authorities as well.

Rep. Maxine Waters, D-Calif. and chairwoman of the financial services committee, said while she understands that Bankman-Fried must be held accountable, she is “disappointed” that the arrest happened before he got to testify.

“Although Mr. Bankman-Fried must be held accountable, the American public deserves to hear directly from Mr. Bankman-Fried about the actions that’ve harmed over one million people, and wiped out the hard-earned life savings of so many,” Waters said in a statement Monday evening.

Bankman-Fried became prominent in Washington and donated millions of dollars toward mostly left-leaning political causes and Democrat political campaigns, and was hailed as the new face of the crypto industry. He previously testified in favor of certain bills that would regulate the crypto industry in ways that favored FTX.

A handful of members of the Financial Services Committee have previously taken political donations from FTX or Bankman-Fried, including Rep. Josh Gottheimer, D-N.J. and Rep. Ritchie Torres, D-N.Y.

Bankman-Fried has, more or less, remained in his Bahamian luxury compound in Nassau.

This will be the first public appearance by Ray since FTX’s collapse. Before FTX, the restructuring expert was best known for having to clean up the mess at Enron roughly 20 years ago. Ray has said in court filings that the financial conditions at FTX were worse than at Enron, and that he has no confidence in FTX’s bookkeeping before he took over the firm.

“FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets,” Ray said in his prepared remarks for Tuesday’s hearing.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

This undated photo provided by the Grants Pass Police Department shows Benjamin Obadiah Foster. Fos...
Rio Yamat and Andrew Selsky, Associated Press

Oregon kidnap suspect previously released the day he arrived at prison

A man at the center of an intense police search in Oregon after a violent kidnapping last week was released from custody in October 2021 by Nevada prison officials on the same day he was transferred to the state's custody to serve a kidnapping sentence, authorities said Monday.
9 hours ago
FILE - Military personnel watch as Air Force One, with President Donald Trump, aboard prepares to d...
Associated Press

Boeing bids farewell to an icon, delivers last 747 jumbo jet

Boeing bids farewell to an icon on Tuesday: It's delivering its final 747 jumbo jet.
9 hours ago
seattle police...
Associated Press

Name of Seattle officer in crash that killed woman released

Police have released the name of a Seattle police officer who was responding to a medical call when his patrol SUV hit and killed a 23-year-old Jaahnavi Kandula last week in a city crosswalk.
9 hours ago
Belarus President Alexander Lukashenko, left, poses with Zimbabwean President Emmerson Mnangagwa at...
Associated Press

Lukashenko: Belarus willing to offer more help to Russia

HARARE, Zimbabwe (AP) — Belarus President Alexander Lukashenko said Tuesday that his country is willing to offer more assistance to close ally Russia in its war against Ukraine. But Lukashenko stressed that Russia does not need “any help” right now. “However, if our Russian brothers need help, we are always ready to offer such assistance,” […]
1 day ago
U.N. special rapporteur for the human rights of migrants Felipe Gonzalez Morales speaks during a pr...
Associated Press

UN expert: Deaths of Bangladeshi migrants should be probed

DHAKA, Bangladesh (AP) — The countries where Bangladeshi migrant workers are employed, including former World Cup host Qatar, should thoroughly investigate all cases of deaths and human rights violations, a United Nations expert said Tuesday. Asked about the reported deaths of at least 450 Bangladeshi workers involved in construction projects in Qatar including stadiums used […]
1 day ago
FILE - A flare burns off methane and other hydrocarbons as oil pumpjacks operate in the Permian Bas...
Associated Press

Difficulty measuring methane slows plan to slash emissions

NEW YORK (AP) — The doors of a metal box slide open, and a drone rises over a gas well in Pennsylvania. Its mission: To find leaks of methane, a potent greenhouse gas, so that energy companies can plug the leaks and reduce the emissions that pollute the air. The drone is among an array […]
1 day ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Lawmakers to hold FTX hearing despite former CEO arrest