Bankman-Fried plans to testify remotely at a congressional hearing

The collapse of FTX, a popular cryptocurrency derivatives exchange, has raised questions about the stability of the market and the potential for future failures.

by Faruk Imamovic
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Bankman-Fried plans to testify remotely at a congressional hearing

The collapse of FTX, a popular cryptocurrency derivatives exchange, has raised questions about the stability of the market and the potential for future failures. In response, the Senate Banking Committee has announced that it will hold a hearing on the matter on December 14.

Sam Bankman-Fried, the CEO of FTX, has stated that he is not currently scheduled to appear at the hearing. However, he has indicated that he is open to having a conversation with the chair and ranking member of the committee if they believe his attendance is important.

"I am open and willing to have a conversation with the chair and the ranking member about the hearing if they believe it's important that I attend," said Bankman-Fried, Reuters reports.

Bankman-Fried

He said that his testimony at the upcoming Senate Banking Committee hearing is likely to be "underwhelming" because he no longer has access to internal information at FTX.

Bankman-Fried stated that this would prevent him from confidently answering questions about the causes of FTX's collapse and what can be done to prevent similar failures in the future. The hearing will likely focus on the causes of FTX's collapse and what can be done to prevent similar failures in the future.

FTX has been widely criticized for its use of excessive leverage, which some belief contributed to its downfall. Critics have called for stricter regulations on leverage in the cryptocurrency market, arguing that it is necessary to protect investors and prevent future failures.

In addition to discussing the specific causes of FTX's collapse, the hearing may also touch on broader issues related to the regulation of the cryptocurrency market. The market has grown rapidly in recent years, and many believe that it is in need of better oversight and greater transparency.

Overall, the hearing on FTX's collapse is likely to be a closely watched event, as it will shed light on the state of the cryptocurrency market and the potential risks and challenges it faces. While the market has shown great promise, the failure of a major player like FTX highlights the need for careful monitoring and regulation to ensure its long-term stability and viability.

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