Sam Bankman-Fried, who is currently in the Bahamas, will be back in the US in December to attend a hearing to be held by the House of Representatives Financial Services Committee to rule out the collapse of his exchange, FTX. to lay.
According to FTX’s bankruptcy filing, read by the live coins, the collapse left more than 100,000 creditors behind. However, another paragraph of the document states that this number could easily reach 1 million wounded.
“As determined in the debtor files, there are over a hundred thousand creditors in these Chapter 11 cases. In fact, there may be over a million creditors in these Chapter 11 cases.”
Besides lost money, another point of concern for FTX users is their privacy. After all, Celsius, another cryptocurrency company, exposed all of its creditors last month after it declared bankruptcy, and it could happen again.
FTX collapse worries officials
Some portals like DailyMail point out that even the FBI is planning to extradite Sam Bankman-Fried to the US. After all, his empire had more than 134 companies, some of them under US laws, such as FTX.US.
In any case, Bloomberg sources say the FTX founder would be cooperating with the authorities of the Bahamas, the host country of the global FTX and home of the former billionaire, and would be in talks with US authorities.
That said, the US Financial Services Board expects to hear back from Bankman-Fried later this month, regardless of how his journey goes.
“The FTX crash caused massive damage to over a million users, many of whom were regular people who invested their hard-earned savings in cryptocurrency exchange FTX, only to have everything disappear in seconds”said Maxine Waters of the Financial Services Committee.
Binance and other FTX related companies such as Alameda Research are also expected to attend the occasion.
Finally, Waters also commented on the need for regulation that would not allow such cryptocurrency services to “operate in the shadows outside of robust federal oversight and clear traffic regulations.”
The domino effect of FTX is starting to be felt in the market
Due to the lack of confidence resulting from the collapse of one of the world’s largest brokers, investors are rushing to take their money from other services. As a result, others have also proven to be insolvent while trying to hide it from their clients.
In addition, several exchanges also had exposure to FTX, which also caused them to lose their money that actually belonged to their users. Therefore, the current market situation looks like a labyrinth, with several roads intersecting and only one way out.
Another consequence of massive looting can also be observed in the networks themselves. Bitcoin transaction fees have skyrocketed this week and are already at R$3.70.
The same is happening in Ethereum, with even higher values. Either way, this helps ETH holders as the network burns more coins than it prints, which could be good news.
Therefore, even though the moment is uncertain about the industry, cryptocurrencies continue to do their job. That is, processing transactions and serving as a shelter for those who do not trust third parties, whether entrepreneurs or politicians.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
