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Elizabeth Warren demands answers from FTX following crypto firm’s collapse
Massachusetts Senator Elizabeth Warren, who has long warned about the dangers of cryptocurrencies, is seeking answers from FTX and its former leader, Sam Bankman-Fried, after the crypto exchange imploded last week in a still-evolving saga.
Warren and Sen. Richard Durbin of Illinois sent a letter on Thursday addressed to FTX, Bankman-Fried, and the company’s new chief executive, John Jay Ray III, who helped Enron navigate its bankruptcy process. The senators requested information and answers to questions related to the misuse of billions of dollars in customer funds and other allegations of fraud.
“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,” they wrote. “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.”