US lawmakers call on DOJ to hold FTX executives accountable 'to the fullest extent of the law'
"FTX's downfall was not simply the result of sloppy business and management practices, but rather appears to have been caused by tactics intentional and fraudulent,” the letter says.
New
Two Democratic members of the United States Senate have called on the Justice Department to investigate the collapse of FTX and possibly prosecute those involved in wrongdoing.
In a November 23 letter to U.S. Attorney General Merrick Garland and Assistant Attorney General Kenneth Polite, Senators Elizabeth Warren and Sheldon Whitehouse asked the Justice Department to open an investigation into the fall of the FTX crypto exchange with "the most scrutiny". Lawmakers cited the impact the collapse of a major crypto company had on related companies — with lenders such as Genesis and BlockFi halting transactions — and funds that retail investors FTX might not recover.
The senators specifically called out former FTX CEO Sam Bankman-Fried for his role in the controversy, including his deleted tweet that the funds were "good" on the exchange and attempts to downplay concerns about the company's liquidity problems. Warren and Whitehouse echoed characteristics of FTX's management from the company's bankruptcy proceedings, which called Bankman-Fried and others "inexperienced and unsophisticated."
"FTX's downfall wasn't just the result of sloppy management and mismanagement...
"FTX's downfall was not simply the result of sloppy business and management practices, but rather appears to have been caused by tactics intentional and fraudulent,” the letter says.
New
Two Democratic members of the United States Senate have called on the Justice Department to investigate the collapse of FTX and possibly prosecute those involved in wrongdoing.
In a November 23 letter to U.S. Attorney General Merrick Garland and Assistant Attorney General Kenneth Polite, Senators Elizabeth Warren and Sheldon Whitehouse asked the Justice Department to open an investigation into the fall of the FTX crypto exchange with "the most scrutiny". Lawmakers cited the impact the collapse of a major crypto company had on related companies — with lenders such as Genesis and BlockFi halting transactions — and funds that retail investors FTX might not recover.
The senators specifically called out former FTX CEO Sam Bankman-Fried for his role in the controversy, including his deleted tweet that the funds were "good" on the exchange and attempts to downplay concerns about the company's liquidity problems. Warren and Whitehouse echoed characteristics of FTX's management from the company's bankruptcy proceedings, which called Bankman-Fried and others "inexperienced and unsophisticated."
"FTX's downfall wasn't just the result of sloppy management and mismanagement...
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