Sam Bankman-Fried should testify before the congress about the failure of FTX

FTX founder Sam Bankman-Fried will be “informed” at a hearing in the US Congress to collapse his crypto group, he said on Friday, in a turnaround that will mark his first public contact with US officials about his bankruptcy.

The Committee on Financial Services of the US House of Representatives examines the collapse of FTX, whereby its first hearing is planned for December 13th, while the legislature is trying to find out, as the $ 32 billion of Banksman-Fried imploded and possibly millions of creditors, including small investors, left losses.

The 30-year-old has been in a media flash since FTX has filed for bankruptcy last month, and has given numerous media against the advice of his lawyers interviews to obviously try to explain his role and understanding of the events that have led to his collapse, but he has expressed his reluctance to speak before the congress.

Now he has bowed to the pressure after Maxine Waters, the chairman of the Financial Service Committee, made it clear that a summons were on the table if he refused and begged it to speak to "the customer, investors and others of the company".

In a series of Twitter posts on Friday, Bankman-Fried said that he was ready to say. "I still have no access to many of my data - professionally or privately. So there is a limit of what I can say, and I will not be as helpful as I want," he added.

As a witness, John J Ray is already scheduled, who has taken over the chairmanship of the now dissolved stock exchange and heads its bankruptcy proceedings.

The rapid collapse of Bankman-Fried's crypto empire has sent shock waves through the digital assets industry and triggered several examinations worldwide, in which dozens of authorities try to understand how FTX and its connected trading business Alameda Research worked and failed. A number of other crypto companies, including the broker Genesis and the lender Blockfi, are also stressed due to connections to FTX.

Bankman-Fried, who has stayed on the Bahamas since the collapse of FTX, said that he would "try to be helpful during the hearing" and "what in my opinion led to a crash", "my own failure" and "ways" to illuminate this could bring added value internationally.

He repeatedly denied that he has misused and committed customer money, but admitted that there was a lack of fundamental risk management and lost sight of the close relationship between FTX and Alameda.

"I had seen myself as an exemplary CEO that would not be lazy or unrelated," he said on Friday. "Hopefully people can learn from the difference who I was and who I could have been."

legislators intensify their examination of the crypto industry. On Thursday, the US Securities and Exchange Commission asked US stock exchange-nodes to disclose all effects of the "widespread disorder" on the cryptoma markets. The regulatory authority added that listed companies should aim to provide investors "specific, tailor -made disclosures" about how market events, including bankruptcies, have had an impact on their business.

In the meantime, Changpeng "CZ" Zhao, Managing Director of the KryptoBörse Binance, continued his online criticism at his former rival. When FTX met with difficulties for the first time last month, Zhao initially offered to buy a part or the entire platform. This deal would probably have presented a rescue contract, but it quickly dissolved.

Binance was also an early investor in FTX and got out of the investment last year. On Friday Zhao said that this decision was answered by Bankman-Fried with a "out of the joints".

"He started a number of offensive tirades against several members of the Binance team, including the threat of" Extraordinary efforts to ask us to check out ", said Zhao wrote on Twitter .

"You won," replied Bankman-Fried. "None of this is necessary. You won. Why are you lying about it now?"