Win McNamee
U.S. Senators Elizabeth Warren (D-MA) and Dick Durbin (D-IL) have demanded the now-bankrupt cryptocurrency exchange FTX to shed light on its practices and finances from 2019 to present.
Warren and Durbin sent a letter earlier this week to FTX ex-CEO and founder Sam Bankman-Fried as well as John Ray III, who succeeded SBF as the current chief after FTX and its more than 130 affiliates filed for Chapter 11 on November 11, requiring information about balance sheets for SBF's crypto empire no later than November 28.
"New revelations continue to shed light on what now appears to be an appalling case of greed and deception," the letter read. “The public is owed a complete and transparent accounting of the business practices and financial activities leading up to and following FTX’s collapse and the loss of billions of dollars of customer funds.”
The Senators also said they want to understand FTX's thinking behind acquiring insolvent crypto lender Voyager Digital (OTCPK:VYGVQ), as well as details on the former's relationship with its sister company Alameda Research, and the status of the $1.7B of customer funds that apparently went missing.
“Billions of dollars-worth of investor funds seem to have disappeared into the ether (ETH-USD),” the letter said.
In reference to Bankman-Fried's Twitter post last week about the mistakes he made that ultimately resulted in the demise of FTX, the letter also called for clarification on how SBF's "poor internal labeling" led to FTX's liquidity crunch.
FTX, which previously had a valuation to the tune of $32B, has come under significant regulatory spotlight in recent days after its abrupt downfall that impacted some 1M customers. It's already been probed by the Manhattan U.S. attorney's office and faces a criminal investigation by Bahamian authorities.
On Wednesday, U.S. House committee plans December hearing on FTX meltdown.
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