Senators Demand Investigation into FTX
Senators Warren and Whitehouse asked the DOJ for an immediate response.
Key Takeaways Senators Elizabeth Warren and Sheldon Whitehouse requested that the Department of Justice investigate FTX today.
They wrote a letter outlining the failures of FTX and the impact of its collapse on retail investors.
Warren made several other statements about FTX in the months following its collapse.
Share this article The senators noted that FTX’s collapse had a ripple effect on the financial industry. They pointed out that FTX was once a leading crypto exchange, and that at least 130 affiliated companies filed for bankruptcy this month. Warren and Whitehouse claimed that FTX deceived customers via celebrity endorsements and that former FTX CEO Sam Bankman Fried had downplayed liquidity concerns after users realized that they couldn’t withdraw their funds. They also noted that John Jay Ray, the current CEO of FTX, highlighted many of FTX’s failures this week. Ray pointed out in public filings that FTX had poor regulatory oversight, concentrated administrative controls among inexperienced leaders, concealed its misuse of customer money, and that FTX could have owed $8 billion to one million customers. This letter is not Warren’s first regarding FTX. On November 16, she wrote a letter to Dick Durbin, a fellow senator, asking FTX for information. Warren also published an opinion piece in the Wall Street Journal yesterday. She called FTX’s fall a wake-up call for regulators (including the DOJ, Securities and Exchange Commission and U.S. Treasury). Recent reports indicate that some of these agencies are already investigating FTX. Decentral Media, Inc. does not provide investment advice. We do not provide personalized investment advice or any other financial advice. This website’s information is subject to change at any time. The information on this website could become obsolete or incorrect. You may not be able to update any information that is outdated, incomplete or inaccurate. We also reserve the right to change any information that is incorrect, incomplete or outdated. If you need investment advice about an ICO, IEO or other investment, we strongly recommend that you consult a licensed financial advisor or other qualified financial professional. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.See full terms and conditions.Recommended News