Disgraced FTX Founder SBF Arrested, Will He Testify Before U.S. Congress?

Maxine Waters has said that she was disappointed about the news of FTX founder's arrest a day before the U.S. congress hearing.
By Bhushan Akolkar

Sam Bankman Fried, the disgraced founder of crypto exchange FTX, was arrested on Monday evening as the U.S. government filed for criminal indictment. The arrest took place just a day before SBF’s scheduled hearing before the U.S. congress.

Following SBF’s arrest House Financial Services Committee Chair Maxine Waters, D-Calif. expressed her disappointment and surprise over the arrest. In her message after the arrest, Waters said:

“I am surprised to hear that Sam Bankman-Fried was arrested in the Bahamas at the direction of the United States Attorney for the Southern District of New York. It’s about time the process to bring Mr. Bankman-Fried to justice has begun.

However, as the public knows, my staff and I have been working diligently for the past month to secure Mr. Bankman-Fried’s testimony before our Committee tomorrow morning. We received confirmation this afternoon from Mr. Bankman-Fried and his lawyers that he was still planning to appear before the Committee tomorrow, but then he was arrested.

Maxine Waters still believes that the American public still needs to hear directly from SBF over the actions that harmed more than a million customers of the crypto exchange FTX.

“The public has been waiting eagerly to get these answers under oath before Congress, and the timing of this arrest denies the public this opportunity. While I am disappointed that we will not be able to hear from Mr. Bankman-Fried tomorrow, we remain committed to getting to the bottom of what happened, and the Committee looks forward to beginning our investigation by hearing from Mr. John Ray III tomorrow,” she added.

Arresting FTX Founder SBF

The Bahamas authorities decided to arrest the FTX founder on Monday evening following an order from the U.S. Attorney for the Southern District of New York. The next step would be his extradition to the U.S.

The Financial Services Committee will hear from the newly appointed FTX CEO and restructuring expert John Jay Ray III. In his testimony, Ray will explain how FTX US didn’t operate separately from the main corporate entity.

SBF and FTX are facing of conducting wire fraud, money laundering, violations of securities laws, and much more,

Advertisement
Bhushan Akolkar
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.