- Sam Bankman-Fried says he plans to start a business to repay all FTX creditors, estimated to be about $50 billion for more than one million creditors.
- The US House committee on financial services has officially confirmed that SBF would be a witness in the December 13 hearing on the FTX saga.
The founder of the now-bankrupt FTX crypto exchange, Sam Bankman-Fried, SBF, has indicated that he plans to establish a new business that will enable him to repay all FTX creditors. While speaking at a recent BBC interview, FTX’s former CEO said he would do anything to make that happen.
He further said he started thinking about what he and his team could do to help users who haven’t received much of their money back. “I believe I owe it to FTX users to do the right thing for them,” SBF added. Based on the exchange’s bankruptcy filing last month, FTX’s creditors might be over a million.
Hence, FTX would repay its creditors between $10 billion and $50 billion. In one of his statements during his media apology tour, SBF argued that he wouldn’t commit fraud deliberately. But then, he acknowledged that FTX’s failure proved that he wasn’t as competent as he had imagined.
House Committee adds SBF as a witness
In a related development, the US House Committee on financial services has officially confirmed that SBF would be a witness in the December 13 hearing on the FTX saga. The confirmation follows several days of argument and counter-arguments between the FTX founder and Maxine Waters, a US House representative.
SBF’s name is among the witnesses listed to participate in the hearing, known as “Investigating FTX’s Collapse, part 1.” Furthermore, FTX’s new CEO (John Ray) is also listed to appear at the hearing. The list is being updated regularly as the FTX founder’s name was included on December 11, while ray’s name has been on the list since December 9.
However, whether SBF would appear as a witness in the hearing is uncertain, given that he failed to confirm that he would appear at a December 14 Senate committee hearing on the FTX crash. Meanwhile, the FTX founder failed to respond to the Senate committee’s testimony request.
The Senate committee hearing regarding the FTX collapse is slated for December 14. Committee chair Sherrod Brown warned SBF in a letter dated December 7 that the Senate won’t hesitate to issue a subpoena to compel SBF to testify. In an updated statement two days later, Brown and Senator Pat Toomey confirmed that SBF never responded to the testimony request.
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However, the statement adds that the committee will make all efforts to ensure the appearance of SBF at the hearing. On December 9, Toomey tweeted that he’s happy SBF is among the list of witnesses at the House hearing. Hence, he is convinced that the former FTX CEO would appear at the Senate hearing, which comes the next day.
Time will tell whether SBF’s repayment of FTX creditors or his appearance at the Senate and House committees’ hearing will positively impact the crypto market.
