Sam Bankman-Fried Dodges on call to testify at the request of Maxine Waters

Sam Bankman-Fried, the disgraced former CEO of FTX, on Sunday evaded the call of House Financial Services Committee Chair Maxine Waters (D-CA) to testify.

@SBF_FTXwe appreciate you being candid in your discussions about what happened at #FTX. Your willingness to speak to the public will help the company’s customers, investors and others. Therefore, we would welcome your participation in our December 13 hearing,” Waters wrote, inviting Bankman-Fried to testify before the commission’s scheduled December 13 hearing.

In response, Bankman-Fried claimed two days later that he is still “learning and assessing” what led to the collapse of FTX and thus cannot testify before the committee.

The disgraced former tech CEO wrote: “Rep. Waters and the House Committee on Financial Services: Once I’m done learning and reviewing what happened, I would consider it my duty to come before the committee and explain. Not sure if that will happen on the 13th. But if so, I will testify.”

The collapse of the digital currency exchange FTX, as well as its sister organization hedge fund Alameda Research, has rocked the cryptocurrency industry. As lawmakers and government officials try to figure out what happened, the Department of Justice (DOJ) has requested an independent investigation into FTX regarding allegations of fraud.

Breitbart News reported that Bankman-Fried and his co-founders donated more than $300,000 to nine lawmakers who are now investigating the company for wrongdoing.

DOJ Trustee Andrew R. Vara said in the agency’s filing, “An examiner should — and should — investigate the substantial and serious allegations of fraud, dishonesty, incompetence, misconduct, and mismanagement by the debtors.”

Breitbart News technology reporter Lucas Nolan explained:

The filing described FTX’s collapse as the “fastest major corporate failure in U.S. history.” According to Vara, there is strong reason to believe that Bankman-Fried, the former CEO, and other executives “misdirected” the company or engaged in fraudulent behavior. Bankman-Fried has been replaced as CEO by John Jay Ray III, who famously oversaw Enron’s bankruptcy. Vara added that the court must approve the appointment of an independent investigator to investigate the matter further.

After FTX quickly collapsed, lawyers began to question whether the exchange had engaged in fraudulent activity by misusing client funds. In lawsuits, FTX’s new CEO, John Jay Ray III, stated that the company had concealed misappropriation of company funds, including the purchase of real estate in the Bahamas from employees.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as here,” Ray said in the filing.

The US Attorney’s Office for the Southern District of New York and attorneys for the Securities and Exchange Commission (SEC) have sent requests for information to cryptocurrency investors and trading firms that have worked with FTX.

Sean Moran is a conference reporter for Breitbart News. Follow him on Twitter @SeanMoran3.

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