US financial committee to hold hearing on FTX collapse in December

The United States House Committee on Financial Services plans to hold a hearing into FTX collapse in December.

According to the press statement, the committee would “hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and related entities.”

The press release also noted that the hearing would focus on “the broader consequences for the digital asset ecosystem.”

Speaking on the development, Chairwoman Maxine Waters (D-CA) said:

“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds. Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year. “

Rep. Patrick McHenry (R-N.C.) said Congress “must get to the bottom of this for FTX’s customers and the American people.” He added that it was essential to “hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.”

Lawmakers in the U.K. already quizzed Binance for its role in the eventual collapse of FTX.

Meanwhile, Reuters reported that Sam Bankman-Fried was sued in a U.S. court by investors who alleged the company’s yield-bearing crypto accounts violated Florida’s law.