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House Oversight Committee Requests Documents and Information From FTX

 |  November 20, 2022

Raja Krishnamoorthi, chairman of the House Oversight Committee’s Subcommittee on Economic and Consumer Policy, has requested FTX turn over documents and information as part of its investigation into the crypto exchange’s collapse, Bloomberg reported on Friday (Nov. 17).

“I am extremely troubled by recent news surrounding the collapse of FTX Trading Ltd. (FTX), including its affiliated entity FTX US, and the potentially significant harm that FTX’s bankruptcy will cause to American consumers and investors,” Krishnamoorthi wrote in a letter to former FTX CEO Sam Bankman-Fried and John J. Ray III, the new CEO and chief restructuring officer.

Krishnamoorthi is requesting detailed information on the liquidity crisis that led to the collapse of FTX and the decision to declare bankruptcy. He asked what the company plans to do to “ensure that every single dollar is returned to American consumers who placed their trust in your company.”

Read more: DOJ Investigates FTX Collapse: Report

The subcommittee asked that the requested information and documents be turned over by Dec. 1.

The House Financial Services Committee is also undertaking a bipartisan hearing on the matter which will begin in December.

That hearing will focus on the platform’s collapse and its broader consequences for the digital asset ecosystem, according to a Wednesday (Nov. 16) press release.

“The Committee expects to hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and related entities, among others,” the release stated.

The hearing is being convened by the committee Chairwoman Maxine Waters (D-Calif.) and Ranking Member Patrick McHenry (R-N.C.).