Crypto

US senators demand that Bankman-Fried and executives be held accountable for the chaos generated by FTX

Democratic Senators Elizabeth Warren and Sheldon Whitehouse sent a letter to the US Department of Justice on Wednesday asking Attorney General Merrick Garland to investigate “disturbing allegations of fraud and illicit behavior that led to the collapse of the [FTX] 🇧🇷 In addition, they demanded that company executives be held accountable “to the fullest extent of the law”.

In the document, lawmakers reminded Garland and Assistant Attorney General Kenneth Polite of the Justice Department’s recently renewed commitment to prosecute white-collar criminals. They asked the Attorney General’s Office to honor that and begin investigating former FTX CEO Sam Bankman-Fried and other executives “with the utmost scrutiny.”

Elizabeth, a longtime critic of the crypto industry, closely monitored the collapse of the Bahamas-based FTX, as well as the ripple effects the collapse had across the market.

On Tuesday, Elizabeth, Senator Dick Durbin and Senator Tina Smith also sent a letter to Fidelity, asking the financial services company to reconsider allowing retail customers to include Bitcoin (BTC) in their retirement plans. And last week, Elizabeth and Durbin sent a letter to the founder of FTX Bankman-Fried and the broker’s current CEO, John Jay Ray III, asking for information about what caused the company’s collapse.

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In addition to the knock-on effect on the entire cryptocurrency industry, Elizabeth and Whitehouse’s letter expresses concern about the impact of the FTX implosion on retail investors, who they say have been given a “false sense of security and legitimacy” because of the “high-value ad placements and celebrity endorsements” of the broker. Brazilian supermodel Gisele Bündchen, for example, is a partner in the business and has already advertised for the company.

While the letter urges the Justice Department to investigate and prosecute all FTX executives potentially involved in the alleged fraud, Bankman-Fried bears the brunt of Elizabeth and Whitehouse’s ire.

“The downfall of FTX was not simply the result of sloppy business and management practices, but appears to have been caused by the intentional and fraudulent tactics employed by Mr. Bankman-Fried and other FTX executives to get rich,” the senators wrote.

“Actually, Mr. Bankman-Fried already revealed his true interests in self-enrichment last year when he embezzled $300 million into his own wallet.”

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