(The listening to is scheduled to start out at 10 a.m. ET. If the above video does not play at the moment, please refresh the web page.)

The Home Monetary Companies Committee is holding a listening to Tuesday morning on the collapse of cryptocurrency alternate FTX following the Monday night time arrest of founder Sam Bankman-Fried within the Bahamas.

The Justice Division and Bahamian authorities mentioned Bankman-Fried, who was beforehand scheduled to testify earlier than the panel, was arrested primarily based on an sealed indictment within the U.S. that was unsealed shortly after the listening to began.

The U.S. Attorneys Workplace for the Southern District of New York charged the disgraced crypto government with eight felony counts: conspiracy to commit wire fraud and securities fraud, particular person expenses of securities fraud and wire fraud, cash laundering and conspiracy to keep away from marketing campaign finance laws.

John J. Ray, the corporate’s new CEO, is the panel’s sole witness. The corporate imploded and filed for Chapter 11 bankruptcy final month after reportedly transferring billions of {dollars} in FTX buyer funds to Bankman-Fried’s hedge fund, Alameda Analysis.

The Securities and Trade Fee additionally charged the previous crypto “darling” Tuesday morning with allegedly “orchestrating a scheme to defraud fairness traders in FTX Buying and selling,” in response to the company.

The Senate Banking Committee had additionally requested Bankman-Fried to testify at a Wednesday listening to that he beforehand refused to attend.

Previous to his firm’s implosion, Bankman-Fried donated virtually $40 million to candidates, campaigns and political motion committees within the 2022 congressional midterm elections, with most of his publicly disclosed contributions going towards Democrats. Ryan Salame, the co-CEO of FTX Digital Markets, donated one other $23 million, with nearly all of his contributions heading towards Republicans.

Source link