Sam Bankman-Fried indicted as CEO testifies

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WASHINGTON – Congress waded into the complex, mystifying world of cryptocurrency Tuesday with a hearing on FTX, a newfangled company that found an old-fashioned way to lose billions of dollars, according to its CEO.

Federal prosecutors unsealed an eight-count indictment Tuesday against a former CEO, Sam Bankman-Fried, who was arrested in the Bahamas on charges including wire fraud and misusing customer funds. Customers lost an estimated $8 billion and the company has filed for Chapter 11 bankruptcy protection.

The hearing before the House Financial Services Committee explored the new frontier of cryptocurrency for transferring money – and wealth – through the digital realm. The unfamiliar landscape adopted a language of blockchain and crypto wallet.

But the allegations are simple enough. FTX Trading Ltd. assets were routinely comingled with another company, Alameda Research LLC, where the company and Bankman-Fried allegedly appropriated customer funds for their own use, such as buying luxury real estate.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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