SBF scheduled to testify tomorrow at US House hearing on FTX collapse ExamPaper

The fallen CEO of FTX, Sam Bankman-Fried, is planned to testify as a witness before the US House of Representatives Financial Services Committee tomorrow.

The commission is investigating the events leading up to FTX’s implosion, which resulted in the crypto exchange’s bankruptcy last month. Before Bankman-Fried testifies, John J. Ray III, the new CEO of FTX, will address the House at the first panel.

The hearing, “Investigating the FTX Collapse, Part I,” sounds like a movie title — and some parts of it probably feel like a title, given how crazy this whole situation has become. But questions about what For real happened at FTX can go unanswered; though Bankman-Fried is about to testify, there are still concerns that he might get cold feet.

Last week, in a back-and-forth tweet exchange, California Representative Maxine Waters, the chair of the House of Committee on Financial Services, invited Bankman-Fried to participate in the December 13 hearing. Bankman-Fried effectively refused.

That didn’t go down well with Waters, who noted that Bankman-Fried has been on a personal media tour and speaking publicly to groups ranging from “Good Morning America” ​​to the BBC.

Amid the possibility of a congressional subpoena to force his presence, Bankman-Fried tweeted back to Waters on Dec. 9 that he is “willing to testify,” adding: “[T]here’s a limit to what I’ll be able to say, and I won’t be as helpful as I’d like. He claimed he doesn’t have access to “much” of his data.

Although he evaded many questions from reporters, Bankman-Fried has been rather chatty in recent weeks. Perhaps it will be a different story when he is under oath before the US government.

Anyway, Bankman-Fried said in a tweet he will “try to be helpful” (after saying he won’t be as helpful as he’d like) and will talk about FTX US’s alleged solvency, resolutions to return value to users internationally, which he says will lead to led to the crash, and its ‘own shortcomings’.

Last month, FTX’s bankruptcy hearings began in the U.S. Bankruptcy Court for the District of Delaware.

James Bromley, a partner at Sullivan & Cromwell and co-head of the firm’s global restructuring practice, said at the hearing that FTX “laundered the world” in locations like Berkeley, California; Hong-Kong; Miami; Chicago; and the Bahamas.

A few days before the first bankruptcy hearing, in a Nov. 17 filing with the same court, Ray, who was brought in to clean up the Enron scandal, said there was a “complete absence of reliable financial information.”

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as here,” Ray said at the time.

Tomorrow’s hearing is the first of many with the House aiming to uncover what happened internally that caused one of the largest centralized crypto exchanges in the world to fall so hard and so quickly.

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