Sam Bankman-Fried missed his deadline to respond to the Senate Banking Committee hearing

    Sam Bankman-Fried (SBF), the former CEO of the collapsed cryptocurrency exchange FTX, is currently viewed as the number one enemy of the crypto world, and he also missed his deadline to confirm his appearance at the upcoming Senate Committee hearing.

    The deadline for the above-mentioned hearing was Thursday (8th December 2022) 5 PM (ET), and it was about responding to a Senate Banking Committee request that he will testify at the Committee meeting on 14th December 2022. This, in turn, suggests that there is a possibility of a congressional subpoena being set up.

    On 8th December 2022, Sherrod Brown, the Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and Senator Pat Toomey, a ranking member of the Committee reported a statement on the request. They commented –

    FTX’s collapse has caused real financial harm to consumers, and effects have spilled over into other parts of the crypto industry. The American people need answers about Sam Bankman-Fried’s misconduct at FTX.

    Therefore, as a solution, the Committee requested SBF to testify at their upcoming hearing on FTX’s collapse, and they also informed that they “will consider further action if he does not comply.”

    According to the official website of the United States Senate Committee on Banking, Housing and Urban Affairs, the hearing is titled ‘Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers’ and it will be webcast on 14th December 2022 at 10:00 AM in the Dirksen Senate Office Building G50 location.

    As per the reports, till now two witnesses have been confirmed – Hilary J. Allen, who is a professor at the American University Washington College of Law, and apart from her, there is Mr. Ben McKenzie Schenkkan, who is an actor and author.

    Professor Hilary J. Allen’s research is focused on the impact of new financial technologies on the stability of the financial system. Whereas, on the other hand, Ben McKenzie is an anti-crypto actor who has turned into a commentator. He played the role of a troubled teenager on a U.S. television series known as ‘The O.C.’

    Other than this hearing, SBF has also been requested to attend another hearing which is called ‘Investigating the Collapse of FTX’. This will be held on 13th December 2022 with the U.S. House Financial Services Committee.

    Previously, SBF declined a hearing request from Congresswoman Maxine Waters that he had to attend via a Twitter post. This was supposed to happen on 5th December 2022. About this hearing, he stated that he was not sure about what would happen by the hearing date, but added that when it does happen he will testify. Therefore, on 8th December 2022, Waters stated that “a subpoena is definitely on the table” if SBF fails to voluntarily testify at the hearing.

    The catastrophic collapse of FTX has created a typhoon of backlash from U.S. lawmakers and regulators, which in turn, is acting as a threat that can drown the fledgling crypto asset industry.

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