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US House Committee to Hold Hearing on FTX Implosion

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The US House Committee has revealed plans to hold a hearing from the appropriate entities on the FTX implosion.

The United States House Committee on Financial Services recently disclosed that it would hold a December hearing on the recent FTX collapse to ascertain the cause as investigations ensue. The development was first reported by Reuters Wednesday.

Speaking on the matter, chairwoman of the Financial Services Committee, Maxine Waters, highlighted the financial damage the FTX debacle had on investors, as she noted that over one million users had incurred losses due to the collapse.

“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” Maxine remarked.

The hearing is necessary to investigate the origin of the collapse as a way to reach an appropriate conclusion on steps to take in response. Consequently, all relevant authorities will be present, including FTX, Alameda Research, Sam Bankman-Fried, Binance, and other related entities.

Furthermore, crypto-friendly Congressman and House Committee member Patrick McHenry pointed out the significance of uncovering the actual cause of the implosion. “It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system,” he mentioned.

Reports of the Committee’s decision to hold a hearing come shortly after FTX filed for Chapter 11 bankruptcy. FTX filed for bankruptcy last Friday, with Sam Bankman-Fried stepping down as CEO as the saga progressed. The firm noted that it had 100,000 creditors, but recent reports suggest the number might be as much as 1 million, underlining the extent of its impact.

The FTX debacle has once again highlighted the significance of a definite regulatory framework for the cryptocurrency industry. Waters said last Wednesday that the US needs to ramp up its regulatory efforts to make sure that the appropriate authorities and the law properly oversee crypto entities.

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Albert Brown
Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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