The Chair of the US subcommittee Raja Krishnamoorthi pressed the former and current CEOs of the bankrupt FTX to provide documents related to the exchange’s finances.
The subcommittee is demanding detailed information on the collapse of FTX and its abrupt decision to declare bankruptcy. The significant impact of these moves combined has put the crypto industry in a slump. Considering the current scenario, Krishanmoorthi also pressed FTX to fully comply with Aug 30 document request by his committee.
The Krishnamoorthi Subcommittee has set a Dec. 1 deadline for the submission of the requested details and documents. The requested documents include explainers of FTX liquidity issues, its current crypto holdings, a plan on how it will repay customers, and balance sheets.
Chairman Krishnamoorthi also stated, “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here. FTX investors and the American people demand answers.”
The move comes just after the House Financial Services Committee’s scheduling a hearing about FTX Collapse next month. Along with this, Across Capital Hill, Senators Elizabeth Warren and Richard Durbin have also sent letters to FTX seeking details about its finances.
In the ongoing investigation on the FTX crash, American and Bahamian authorities are in talks about whether to bring the former CEO of FTX, Sam Bankman-Fried to the U.S. for questioning. The sudden collapse has raised several concerns and the situation is only getting more intricate with no concrete evidence from the FTX.
