FTX Balance Sheet Raises Doubts Against Senate Democrats

Senate Democrats with significant clout are joining calls for greater transparency regarding the past financials of the defunct crypto exchange FTX, the network of companies connected to it, and its founder Sam Bankman-Fried.

Senators Dick Durbin of Illinois and Elizabeth Warren of Massachusetts wrote to Bankman-Fried and the new FTX CEO John Ray:

“While the full extent of the damage wrought by FTX and its affiliates continues to unfold, billions of dollars worth of investor funds seem to have disappeared into the ether.

These massive losses raise questions about the behavior of former FTX CEO Sam Bankman-Fried and other company executives, the apparent lack of due diligence by venture capital and other big investment funds eager to get rich off crypto, and the risk of broader contagion across the crypto market that could multiply retail investors’ losses – all of which call into question the promise of the industry.”

Senate Democrats seem to be suspicious of the exchange’s trading lists and accounting practices. And they demand a clear answer by November 28.

“One thing is clear: the public is owed a complete and transparent accounting of the business practices and financial activities leading up to and following FTX’s collapse and the loss of billions of dollars of customer funds.

We, therefore, request that you provide the requested documents and answers to the following questions no later than November 28, 2022.”

John Ray is facing a lot of challenges due to the chaos left by his successor Sam Bankman.

Gary Gensler and Rostin Behnam, the leaders of the Securities and Exchange Commission and the Commodity Futures Trading Commission, were also copied on the letter.

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