Sam Bankman-Fried says he’ll testify next week about FTX Collapse

Embattled FTX co-founder and former CEO Sam Bankman-Fried stated right now that he’ll testify earlier than Congress next week. After a Twitter back-and-forth with committee chair Rep. Maxine Waters, he agreed to testify about the crypto alternate’s sudden collapse. “I still do not have access to much of my data — professional or personal. So there is a limit to what I will be able to say, and I won’t be as helpful as I’d like,” he tweeted this morning. “But as the committee still thinks it would be useful, I am willing to testify on the 13th.” The House Committee on Financial Services will maintain a listening to on Tuesday investigating FTX.

His settlement to testify is an about-face from final week when he tweeted that he solely would seem after he completed “learning and reviewing” what led to the company’s speedy downfall. Waters replied, “Based on your role as CEO and your media interviews over the past few weeks, it’s clear to us that the information you have thus far is sufficient for testimony.”

He testimony for the House Committee will seemingly be distant, based on The Wall Street Journal. Leaders of the Senate Banking Committee, holding a separate FTX listening to next week, have threatened to subpoena him if he doesn’t additionally agree to seem in entrance of their panel. But that could be powerful to implement since he lives within the Bahamas.

NEW YORK, NEW YORK - NOVEMBER 30: FTX founder Sam Bankman-Fried speaks during the New York Times DealBook Summit in the Appel Room at the Jazz At Lincoln Center on November 30, 2022 in New York City. The New York Times held its first in-person DealBook Summit since the start of the coronavirus (COVID-19) pandemic with speakers from the worlds of financial services, technology, consumer goods, private investment, venture capital, banking, media, public relations, policy, government, and academia. (Photo by Michael M. Santiago/Getty Images)

Michael M. Santiago by way of Getty Images

His testimony might embrace a public showdown with John J. Ray III, FTX’s present CEO overseeing chapter proceedings, who can also be testifying Tuesday. Ray hasn’t minced phrases about Bankman-Fried’s “erratic and misleading public statements” about FTX. “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.”

Bankman-Fried resigned final month after Binance backed out of a deal to purchase FTX, citing considerations found whereas conducting due diligence. FTX then filed for Chapter 11 chapter safety, capping off the collapse. The company presently faces greater than 100,000 collectors, however that quantity might increase to over a million.

Hollywood, by no means an business to show down a high-profile downfall story, shortly pounced. Amazon has already greenlit a restricted sequence about FTX helmed by the Russo brothers.

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