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.
How many MILLIONS did he give politicians?
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The FTX contagion: Which companies were affected by the FTX collapse?Some of the firms affected include Genesis, Sequoia Capital, Galaxy Digital, and Galois Capital.
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