- FTX was a “dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry.
- ’Congressman Sherman pledge to investigate and prosecute those responsible.
- Sherman targets both FTX’s Founder Sam Bankman-Fried and the Co-CEO Ryan Salame.
In a press release, Chairman of the Subcommittee on Investor Protection and Capital Markets, US Congressman Brad Sherman (D-Sherman Oaks) released a public statement regarding the fallout of FTX, once a leading crypto exchange company.
The collapse of #FTX, one of the largest cryptocurrency firms in the world, is a dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them. Read my full statement https://t.co/rcALYHoM2U— Congressman Brad Sherman (@BradSherman) November 13, 2022
Sherman mentioned that the recent collapse of FTX was a “dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them” and that he wholeheartedly supports efforts to “make sure those responsible are held accountable.”
He is concerned with the current state of crypto industry and expressed:
While it is now evident that the failure of FTX represents tens of billions of dollars in losses, we do not yet know the scope of financial harm caused to consumers and investors in the U.S. and around the world. It is crucial that we develop a clear understanding of the chain of events and management failures that led to this collapse.
Congressman Sherman, however, pledges to support US regulators’ and law enforcement’s efforts to investigate and prosecute those responsible for the ongoing situation.
He also remarked: “for years I have advocated for Congress and federal regulators to take an aggressive approach in confronting the many threats to our society posed by cryptos.” Moreover, in Sherman’s opinion, the SEC needs to act decisively to eliminate the regulatory limbo in which the crypto business has operated.
As per the US Congressman’s press release, he intends to review potential federal legislation in the upcoming weeks. Sherman revealed that millions of dollars have been spent on lobbying and political campaigns in Washington as part of ‘billionaire crypto bros’ successful attempts to block significant legislation.”
Sam Bankman-Fried, CEO of FTX, spent $39.8 million in political contributions and donations. As a co-CEO of the Bahamas-based FTX Digital Markets, Ryan Salame’s contributions also merit consideration, in Sherman’s opinion. The Congressman believes that when analyzing FTX efforts to influence Washington, one has to look at both CEOs.
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