Sam Bankman-Fried of FTX will be summoned by the Senate Committee if he refuses to testify voluntarily

Next week, hearings on FTX’s collapse will be held by the Senate Banking and House Financial Services Committees.

According to a letter from its leaders on Wednesday, the Senate Banking Committee wants Sam Bankman-Fried to personally testify before it the next week to investigate the collapse of FTX and will subpoena him if he refuses.

Bankman-Fried received a public letter from Senators Sherrod Brown (D-Ohio) and Pat Toomey (R-Pa.), who were the committee’s chair and ranking member, respectively. Bankman-Fried left the exchange the same day it declared bankruptcy last month. The House Financial Services Committee’s hearing on the exchange is followed by the committee’s hearing on Wednesday, Dec. 14.

Consumers have suffered significant financial losses as a result of FTX’s collapse, which also had an impact on other segments of the cryptocurrency market. The American people need an explanation for Sam Bankman-improper Fried’s behaviour at FTX “In a prepared statement, the congressmen stated. “The Committee has asked him to testify at our next hearing on FTX’s collapse, and if he refuses, we may take additional action.

The MPs stated in the letter that witnesses often provide their consent to present. Brown wrote in the letter that if Bankman-Fried hasn’t confirmed his attendance by Thursday, “I am prepared, together with Ranking Member Pat Toomey, to issue a subpoena to compel your testimony.”

Maxine Waters, the chair of the House Financial Services Committee, also requested Bankman-Fried to testify, stating in a tweet on Wednesday that she might also try to subpoena him if he declines to do so.

Since the bankruptcy, Bankman-Fried has engaged in a press tour, engaging with several journalists. He has not given any specific explanations for how FTX seemed to transfer billions of dollars in customer cash to Alameda Research, a different firm he formed and held a majority stake in, instead expressing uncertainty and hinting that others were in charge of the financial transfers.

He is currently under investigation for a number of things, including whether Bankman-Fried may have attempted to manipulate the price of TerraUSD and Luna, which collapsed in their own dramatic ways earlier this year, according to the New York Times. This investigation is being conducted by federal prosecutors with the U.S. Attorney’s Office in the Southern District of New York.

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