FTX founder Sam Bankman-Fried agrees to testify before House

FTX's Sam Bankman-Fried tweets that he's willing to testify before lawmakers

FTX founder Sam Bankman-Fried has agreed to testify before the House Financial Services Committee at a hearing on Cryptocurrency exchange collapsed on Tuesday, he said in a series of tweets on Friday morning.

There has been a lot of controversy in Washington about whether legislators are Bankman-Fried . subpoena, who said he would testify voluntarily because the committee “still thinks it would be helpful.” It is unclear whether he will appear on Capitol Hill in person or stay in the Bahamas, where he has been hiding for most of the time since his company filed for bankruptcy last month, holding meetings interviews with reporters.

In his tweet thread, the former crypto “pet” seems to blame Binance founder, Changpeng “CZ” Zhao.

The former FTX executive appeared in a media frenzy last month talking about the demise of his crypto empire, but this will be the first time the public has a chance to listen. SBF oath.

Sam Bankman-Fried, founder and chief executive officer of Cryptocurrency Derivatives Exchange FTX, during a Senate Agriculture, Nutrition and Forestry Committee hearing in Washington, DC, on Wednesday, February 9, 2022.

Sarah Silbiger | Bloomberg | beautiful pictures

Bankman-Fried wrote that he still doesn’t have access to much of his data, professional or personal, so there’s a “limit” to what he can say.

“I will not be as helpful as I would like. But since the committee still thinks it will be useful I am willing to testify on the 13th,” the post continued.

Bankman-Fried used his tweet thread against Binance boss Zhao, claiming that he “won” and that the restrictions Zhao wanted to impose as part of the company’s canceled bailout Binance is too heavy.

Bankman-Fried doesn’t think there are any winners, he said in a tweet.

Bankman-Fried continued: “Seeing how CZ talks, I’m pretty sure he does.

“Sam was so upset when we decided to back out as an investor that he launched a series of attacks on multiple members of the Binance team,” Zhao wrote on Twitter. topic.

In the days leading up to the demise of FTX, Zhao was considered a potential savior for the exchange. FTX was once considered the most stable and trusted crypto exchange in the industry, but an article from CoinDesk revealed an alarming concentration of self-issued FTT tokens being used as assets. collateral for a multi-billion dollar loan to Alameda Research, Bankman-Fried’s crypto hedge fund. The article, combined with the tweeting activity of Alameda CEO Caroline Ellison, pushed FTX into a liquidity crisis.

Bankman-Fried responded to a series of tweets posted by Zhao about why Binance dropped a potential acquisition offer. When Binance pulled out, FTX went into freefall, eventually having to file for bankruptcy protection shortly after.

Zhao tormented Bankman-Fried for his rampant spending on vanity projects ranging from marketing to “mansion”. He replied a Thursday morning appearance by CNBC contributor Kevin O’Leary on “ink pot.”

O’Leary has said he lost his entire $15 million payday and is ashamed of his carelessness.

Bankman-Fried appeared shy of lawmakers, despite threats to subpoena him from the Senate Finance Committee this week and repeated requests from House Financial Services Chair Maxine Waters, D-Calif., to testify under oath at that board hearing.

Investors and regulators have been looking for answers from Bankman-Fried for some time. Despite his numerous appearances in the media and the widely publicized Twitter space, the former billionaire has revealed little about his tumultuous final days at FTX.

More and more investors and professionals believe that the only place Bankman-Fried should be is prison. Legal experts CNBC spoke to said that his sentence could hypothetically last a lifetime if convicted.

Before Bankman-Fried agreed to testify, CNBC reports that Waters did not plan to subpoena the former billionaire. Waters pushed back, claiming the subpoena was “definitely” on the table.


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