FTX: Representative Maxine Waters Invites Sam Bankman-Fried via Twitter to Testify in Front of House Committee on Financial Services

Representative Maxine Waters, the Chair of the House Committee on Financial Services, has Tweeted asking Sam Bankman-Fried, former CEO and founder of FTX, to testify in front of her Committee this month.

Bankman-Fried has been making the PR rounds in the wake of the collapse of FTX and multiple affiliated companies – with reports of billions in missing funds. Recently, Bankman-Fried participated via a video meeting in the NYT DealMaker event in front of a crowd that applauded his explanations. He then went on to engage with several other media outlets – pressing his case that the failure of FTX was a big mistake due to operational shortcomings and poor accounting procedures. In one interview, Bankman-Fried said he had “misaccounted”  for $8 billion of mission funds.

In fact, Bankman-Fried continues to acknowledge his errors while adding he is trying to recoup the loss recently declaring:

“I messed up. I’m going to do everything I can to make it right–even though I knew it might never be enough.”

It would be shocking if anyone coughed up enough funds to reanimate the FTX group of companies.

In the Tweet, Rep. Waters stated:

“.@SBF_FTX, we appreciate that you’ve been candid in your discussions about what happened at #FTX. Your willingness to talk to the public will help the company’s customers, investors, and others. To that end, we would welcome your participation in our hearing on the 13th.”

The tone of the Tweet has received criticism from some observers who are of the opinion that some Democrats are handling the former CEO with kid gloves due to the fact he was the second largest donor to the Democrat Party. At a hearing of the Senate Agriculture Committee last week, multiple Democrat members acknowledged they had received contributions from Bankman-Fried – addressing head-on the very challenging optics.

The hearing is scheduled for December 13, but it is probably a stretch for Bankman-Fried, currently in the Bahamas, to show up in person in the US when rumblings of a criminal investigation are said to be in process. Allegations of wire fraud to such a profound degree are generally not taken lightly by the Justice Department. At the same time, he could appear virtually, something that has become more frequent at Congressional hearings in a world still dealing with COVID.






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