Wednesday, October 30, 2024

Trending Topics

HomeTop NewsSenators Demand Investigation Into FTX

Senators Demand Investigation Into FTX

spot_img

Key Takeaways Senators Elizabeth Warren and Sheldon Whitehouse asked the Department of Justice to investigate FTX today. In a letter, they outlined FTX’s failures and highlighted the effects of its collapse on retail investors. Warren has made various other statements concerning FTX this month in the aftermath of its collapse.

Share this article URL Copied Senators Elizabeth Warren and Sheldon Whitehouse have demanded an investigation into FTX’s failure. Warren, Whitehouse Demand DOJ Action FTX could soon face further investigations. In a letter published today, Senators Warren (D-MA) and Whitehouse (D-RI) asked the U.

S. Department of Justice (DOJ) to “hold [FTX’s] executives accountable to the fullest extent of the law. ” The senators noted that the once-leading crypto exchange, along with at least 130 affiliated companies, filed for bankruptcy this month.

They also observed that FTX’s collapse had had a ripple effect in the financial industry, noting that lending firms and hedge funds such as Genesis Capital and Galois Capital had millions of dollars locked on FTX, while crypto lender BlockFi had suspended withdrawals in response to the exchange’s implosion. The senators urged the DOJ to focus its investigation on how FTX harmed its customers. Warren and Whitehouse claimed that FTX had deceived customers through advertisement and celebrity endorsements and that former FTX CEO Sam-Bankman Fried had downplayed liquidity concerns when users realized they could no longer withdraw their funds shortly before the firm finally collapsed.

They went on to note that current FTX CEO John Jay Ray highlighted many of FTX’s failures this past week. Ray noted in public filings that FTX suffered from poor regulatory oversight, concentrated administrative control among inexperienced leaders, and concealed its misuse of customer funds. Warren and Whitehouse concluded that FTX’s collapse was “not simply a result of sloppy business and management practices” but rather “intentional and fraudulent tactics employed by [FTX executives] to enrich themselves.

” The two senators said that FTX’s debt discharge could total $8 billion and may be owed to one million customers, especially working and middle-class retail investors. “We urge the Department to center these ‘flesh-and-blood victims’ as it investigates, and, if it deems necessary, prosecute the individuals responsible for their harm,” the letter reads. This is not Warren’s first statement regarding FTX’s collapse.

Alongside fellow senator Dick Durbin, she sent a letter on November 16 urging FTX to provide regulators with information. Warren also published an op-ed in the Wall Street Journal yesterday, where she called FTX’s collapse a “wake-up call” for regulators, including the DOJ, Securities and Exchange Commission, and U. S.

Treasury. Recent reports suggest that some of those agencies are already in the process of investigating FTX. Disclosure: At the time of writing, the author of this piece owned BTC, ETH, and other digital assets.

Share this article URL Copied Disclaimer Read More Read Less The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc.

is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice.

Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information. You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice.

We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities. See full terms and conditions .

Recommended News Elizabeth Warren Demands Data on Texas Crypto Mining News Oct. 12, 2022 Senator Elizabeth Warren has demanded details on the energy consumption of crypto mining companies in Texas. Democrats Demand Data Democrats are demanding mining crypto data.

A letter from Elizabeth Warren. . .

Warren Targets Crypto Miners Over “Disturbing” Energy Consumption People Jul. 18, 2022 Senator Elizabeth Warren has called out the crypto industry yet again. This time, U.

S. -based cryptocurrency miners are in her crosshairs. Warren Pushes for Crypto Miner Reporting Requirements Senator Elizabeth Warren.

. . Warren Introduces Bill to Restrict Crypto Transactions With Russia News Mar.

17, 2022 Senator Elizabeth Warren (D-MA) has introduced a bill that could restrict the ability of crypto businesses and investors to transact with Russia. Bill Would Restrict Crypto Exchanges A bill introduced. .

. .


From: cryptobriefing
URL: https://cryptobriefing.com/elizabeth-warren-demands-ftx-investigation/?utm_source=feed&utm_medium=rss

DTN
DTN
Dubai Tech News is the leading source of information for people working in the technology industry. We provide daily news coverage, keeping you abreast of the latest trends and developments in this exciting and rapidly growing sector.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img

Must Read

Related News