Hearings Before the Government Are Set for FTX
The United States will shortly conduct an investigation into FTX and its officers. Congress.

The United States, as reported by Reuters, The hearing will take place in December and will be held by the House Financial Services Committee. At the hearing, testimony will be sought from representatives of a variety of companies, including FTX, Alameda Research, and Binance, among others. Sam Bankman-Fried, who established FTX and once served as its CEO, is also anticipated to provide testimony.

Rep. Maxine Waters, a Democrat from California, stated that the collapse of FTX would cause "tremendous harm to over one million users, many of whom were everyday people." She went on to say that these investors "put their hard-earned savings" into the exchange and watched as their funds disappeared "within a matter of seconds."

In addition, Representative Patrick McHenry stated that lawmakers seek to "hold bad actors accountable so that responsible participants can use technology to construct a more inclusive financial system."

The financial collapse of the corporation took place over the course of the previous week after it was discovered that its balance accounts contained significant gaps due to a bank run on the exchange. After examining the status of FTX's books, competitor exchange Binance briefly considered a rescue strategy but ultimately decided against pursuing it. Later on, FTX decided to suspend user withdrawals until eventually announcing the company was going bankrupt last Friday.

There are now at least two investigations being conducted into the Bankman-Fried transaction. On Sunday, the authorities in the Bahamas made the announcement that they would be conducting a criminal investigation into FTX, while reports from third parties indicate that the United States government is also conducting such an investigation. The corporation is being investigated by both the SEC and the Department of Justice (DOJ).

On November 10, U.S. senator Debbie Stabenow encouraged U.S. The United States Congress should pass legislation to prevent incidents of a similar nature.

Investors have initiated a class action lawsuit against the celebrity endorsers of FTX in the public realm. A number of high-profile individuals, including professional athletes Tom Brady, Stephen Curry, and Naomi Osaka, model Gisele Bündchen, businessman Kevin O'Leary, and comedian Larry David, are named as defendants in the lawsuit.

Even though it is not yet obvious whether or not these suspicions have any basis in reality, other people have called for an investigation into the possible relationships that SEC chair Gary Gensler may have had with FTX and its officers.