It appears that the former CEO of the now-bankrupt FTX, may not testify on the U.S. House Committee on Financial Services hearing on Dec. 13. US Representative Maxine Waters stated that Sam Bankman-Fried (SBF) talking to the public, will help with the customer, investors, and anyone else affected by the crypto firm's collapse.
Will He Attend or Not?
Well, no one knows for sure. In a tweet, SBF mentioned that he feels like it's his duty to attend and explain what happened. However, he also noted that he will do so once he finished learning and reviewing what happened. That means that his appearance is not a guarantee, and it relies on whether SBF gets to the bottom of the company's downfall.
Rep. Waters, and the House Committee on Financial Services:
— SBF (@SBF_FTX) December 4, 2022
Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.
I'm not sure that will happen by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt
Although, according to Coin Telegraph, his statement does not match his actions. SBF has been in a number of interviews, as well as being vocal on Twitter. Blockchain Association Head of Policy Jake Chervinsky, said that it was because lying under oath is "less appealing," as opposed to lying to media practitioners like Andrew Ross Sorkin or George Stephanopoulos.
Brian Armstrong, the CEO of Coinbase, criticized SBF's claims of the accounting error. He pointed out that finding $8 billion is something you will definitely notice. He added that even the most gullible person would not believe the claims of the former FTX CEO. Even Twitter owner Elon Musk said that he needs an adult timeout, and to move on.
Guilty or Innocent?
Many critics would say that he is guilty, but of course, SBF claims that he is innocent. The former billionaire admitted, that he did not do a good job with his responsibilities to the regulators. He also said that he's had a "bad month," which doesn't begin to cover what has transpired.
SBF claims that he did not commit fraud against anyone, and that he was just as shocked by what happened since he saw it as a thriving business. He declared that he now only has $100,000 dollars in his name, and that he only has one working credit card left. He expressed that looking back, it feels pretty embarrassing, as they completely failed on risk.
The former FTX CEO claims that he knew there was a problem around November 6th, when Coindesk revealed Alameda's FTT position. He also noted that it was potentially serious. He announced that FTX was in a crisis the next day, but also claimed that the assets were fine, according to CNBC.
When Andrew Sorkin asked why SBF had access to the customer's money, he justified it by saying that they agreed to lend it. He also stated that he wasn't in control of the process. However, the FTX company's new head said that he actually had significant and even exclusive control over the firm.
Another reason why customers were asked to wire funds to a bank under Alameda, was because FTX didn't have a bank account back in 2018, according to SBF in response to the asset lending controversy. At the time of the bankruptcy, FTX had around 200 bank accounts spread out across different continents.
