The FTX-Alameda collapse has been labelled as one of the worst crypto collapses in history, with over one million victims who collectively lost their money when the exchange filed for bankruptcy on November 11 2022.
FTX exchange will be subjected to a congressional hearing
The U.S. House Financial Services Committee has initiated a legislative investigation into FTX and its team.
A Reuters report adds that the congressional panel is already working towards scheduling the hearing and that additional details concerning the meeting will be shared at a later date.
Reuters' report further adds that the congressional panel is already working towards scheduling the hearing and that additional details concerning the same will be shared at a later date.
According to Maxine Waters, chairperson of the U.S. House Financial Services Committee:
The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds.
The exchange has been accused of mishandling customer funds and ultimately wiping billions of dollars worth of consumer funds off the market.
U.S. representative Patrick McHenry, also reiterated similar sentiments, stressing the fact that bad actors involved in the collapse should be investigated and penalized.
Per Reuters, Waters later shared how the US needs "legislative action to ensure that digital asset entities cannot operate in the shadows outside of robust federal oversight and clear rules of the road."
Coinbase CEO Brian Armstrong had earlier issued a comprehensive Twitter thread on how the lack of unified cryptocurrency regulation in the U.S. is leading crypto corporations and industries to establish their bases abroad, making it harder for users to track their funds in a transparent manner.
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