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ICYMI: Chairwoman Waters Holds Hearing Exposing Information on the Collapse of FTX and Founder Sam Bankman-Fried
Washington, DC, December 16, 2022
Tags: Full Committee
On Tuesday, Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee held a hearing entitled, “Investigating the Collapse of FTX, Part I” to kick start the Committee’s efforts into uncovering the truth about the collapse of FTX. Despite the fact that prior to his expected appearance, former CEO and founder, Sam Bankman-Fried was arrested by the Department of Justice’s Southern District of New York and hit with charges from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), Chairwoman Waters and Committee Democrats remained committed to using Tuesday’s hearing to get to the bottom of what happened, and deliver the answers that the American public deserves.
Part I of the Committee’s investigation on Tuesday began with testimony from John Ray III, who recently took over FTX after Bankman-Fried resigned. Mr. Ray, who testified before the Committee on Tuesday, also oversaw one of the largest corporate bankruptcies in U.S. history – Enron. In FTX’s bankruptcy filing, Mr. Ray declared that he had never in his career seen such a “complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.” Under the leadership of Chairwoman Waters’, Committee Democrats dug deeper into Mr. Ray’s findings and questioned the new CEO on:
Mr. Ray’s testimony helped to shine a light on the facts involving the collapse. As the hearing wrapped up, Chairwoman Waters vowed that the Committee will be closely following Mr. Ray’s progress in recovering funds for FTX’s customers. Waters also assured the public that the investigation of Bankman-Fried’s fraud and crimes will continue into next year.