The chair of a House panel is asking FTX to turn over documents and information as part of its investigation into the collapse of the once-prominent crypto platform.
(Bloomberg) — The chair of a House panel is asking FTX to turn over documents and information as part of its investigation into the collapse of the once-prominent crypto platform.
“I am extremely troubled by recent news surrounding the collapse of FTX Trading Ltd. (FTX), including its affiliated entity FTX US, and the potentially significant harm that FTX’s bankruptcy will cause to American consumers and investors,” Representative Raja Krishnamoorthi, who leads the House Oversight Subcommittee on Economic and Consumer Policy, wrote Friday.
“FTX’s customers, former employees, and the public deserve answers,” Krishnamoorthi said in a letter to former FTX CEO Sam Bankman-Fried and John J. Ray III, the new CEO and chief restructuring officer who oversaw the liquidation of Enron Corp.
Krishnamoorthi, an Illinois Democrat, requested details on the circumstances surrounding the crypto firm’s spiral into bankruptcy last week, including an explanation of FTX’s liquidity issues, how those issues of the Bahamas-based parent affected its US arm, and details of how customer funds were being used. The subcommittee is also seeking internal documents and communications.
The flow of money between the many different businesses connected to FTX’s empire and whether customer funds were misappropriated are at the heart of potential issues facing the collapsed business. US prosecutors and regulators in both the Bahamas and the US are investigating the events leading up to FTX’s failure.
The subcommittee asked that the requested information and documents be turned over by Dec. 1.
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