Sen. Josh Hawley, R-Mo., a member of the Judiciary Committee, demanded relevant information and correspondence related to FTX from top Biden administration officials.
to abandon the platform. Binance, a larger rival to FTX, backed out of a merger deal after it analyzed the exchange's financial filings.
Following the collapse of FTX, Bankman-Fried stepped down as the company's CEO and his net worth dropped from about $16 billion to no material wealth, according to Bloomberg. Bankman-Fried apologized to FTX users on Twitter, saying he had "f---ed up."John Ray III, who was appointed as FTX's new CEO,that he had never seen "such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.
"Mr. Bankman-Fried allegedly withdrew customer deposits from FTX to offset losses at Alameda, a violation of the exchange’s terms of service," Hawley wrote to Garland, Gensler and Behnam. "To paper over the fact that he had depleted FTX’s assets, Mr. Bankman-Fried filled FTX’s asset ledger with artificial assets of near-zero value and grossly misrepresented the value of those assets.
"The public revelation of this activity caused the value of assets associated with the exchange to plunge, created a liquidity crisis as customers raced to withdraw their deposits, and culminated with both FTX and Alameda filing for bankruptcy," he added. "Customers are now left holding the bag." Hawley requested the three agencies share the requested information and correspondence with his office by Nov. 25, 2022.
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