House lawmakers call Sam Bankman-Fried, other executives, to testify at hearing on FTX collapse

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CEO of FTX Sam Bankman-Fried testifies during a hearing before the House Financial Services Committee at Rayburn House Office Building on Capitol Hill December 8, 2021 in Washington, DC.
Alex Wong | Getty Images

House lawmakers are calling FTX founder Sam Bankman-Fried and other executives to Capitol Hill to testify about the crypto exchange's collapse at a hearing in December.

House Financial Services Committee Chairwoman Maxine Waters, D-Calif., and the ranking Republican Rep. Patrick McHenry, of North Carolina, are holding a rare bipartisan hearing on the matter. They plan to haul up executives from FTX, Alameda Research, Binance and others to testify as well.

“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,” Waters said in a statement. “Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year.”

After a deal to shore up its liquidity with Binance fell through earlier in the week, FTX filed for Chapter 11 bankruptcy protection Friday along with 130 affiliated companies, including Bankman-Fried's crypto trading firm Alameda Research and FTX.us, the company's U.S. subsidiary. Bankman-Fried has since stepped down as CEO of the company he founded.

In a matter of days, FTX went from a $32 billion company to bankruptcy as liquidity dried up and customers demanded to withdraw their funds. FTX founder Bankman-Fried admitted last week that he “f—ed up.”

“There is no sugar coating it. The collapse has been a dumpster fire. Users left out to dry. Ecosystem in limbo,” McHenry said, speaking at an unrelated hearing Wednesday.

CNBC's Mary Catherine Wellons and MacKenzie Sigalos contributed to this article.

This is a breaking news. Please check back for updates.

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