House panel wants internal documents from bankrupt crypto exchange FTX | CNN Business

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A powerful subcommittee in the House of Representatives is seeking internal documents and communications from Sam Bankman-Fried and FTX to understand how the crypto exchange collapsed so suddenly and what is being done to recover customer funds

FTX, formerly one of the most trusted brands in crypto, filed for bankruptcy last week and announced the resignation of Bankman-Fried, its 30-year-old CEO who lost a fortune. In a Friday letter, Democratic Rep. Raja Krishnamoorthi, chairman of the Oversight Committee’s Subcommittee on Economic and Consumer Policy, said he is “extremely troubled” by the FTX bankruptcy and the “potentially significant harm” it will cause to American consumers and investors.

“FTX investors and the American people demand answers,” Krishnamoorthi said. Neither FTX nor a lawyer representing Bankman-Fried responded to a request for comment. The letter cited revelations by newly-installed FTX CEO John J. Ray, who in court filings this week described a “complete failure” by the crypto company to maintain financial controls. Ray said the failures at FTX eclipse even that of Enron, the infamous company whose liquidation he oversaw in the early 2000s.

 

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