FTX collapse was a 'dumpster fire', says US lawmaker announcing investigative hearing

“There is no sweetening: FTX collapse was a dumpster fire,” said Patrick McHenry, member of the House Financial Services Committee.

Members of the US House Financial Services Committee have scheduled a December hearing to explore the collapse of crypto exchange FTX and the “wider implications for the digital asset ecosystem” .

In a Nov. 16 announcement, the House committee said it expected to hear from individuals and companies involved in the events that led FTX Group to file for Chapter 11 bankruptcy, including former CEO Sam Bankman-Fried — also known as SBF — Alameda Research and Binance. It's unclear whether Binance CEO Changpeng Zhao, who has also spoken out on social media about his talks with SBF and FTX, will make an appearance.

"FTX's downfall caused massive harm to over a million users, many of whom were everyday people who invested their hard-earned life savings in the FTX cryptocurrency exchange, only to see it all disappear in seconds,” House Financial Services Committee Chair Maxine Waters said. "We need legislative action to ensure that digital asset entities cannot operate in the shadows without strong federal oversight and clear rules of conduct."

Patrick McHenry, a member of the rankings committee, also expressed support for the FTX investigation, saying it was essential to "hold bad actors accountable" and monitor users of the exchange. McHenry will likely become committee chairman in January if Republicans gain majority control of the House of Representatives.

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