The United States Senate Agricultural Committee has announced that the first court hearing for the troubled crypto derivative exchange FTX will be held next month.
CFTC Chairman to Testify in Court
According to the official website of the U.S. Senate Agricultural Committee, the court hearing is arranged to be held at the G50 Dirksen Senate Office Building in Washington D.C. by 10 a.m., December 1, 2022. The court hearing has the title: “Why Congress Needs to Act: Lessons Learned from the FTX collapse.”
The website further revealed that Rostin Behnam, the chairman of the Commodity Futures Trading Commission (CFTC), will be present at the court hearing as a witness. Recall that the CFTC had long commenced its probe into the debacle of FTX and its American-based counterpart, FTX US.
The court hearing is also geared at introducing the need for congressional action on the general crypto industry. This will be one of the first court cases against FTX since its collapse earlier this month.
FSC to Hold Court Case Against FTX
Before the latest move by the U.S. Senate Agricultural Committee, the Financial Services Committee had announced that it would hold a bipartisan court hearing regarding the insolvency of FTX.
The financial agency also stated that it expected to hear from some key entities tied to the company. These included the company’s founder, Sam Bankman-Fried, Alameda Research, and FTX US. Leading crypto exchange, Binance, was also summoned by the FSC.
The regulatory agency added that the court case will attract “broader consequences for the digital asset ecosystem.” While the financial watchdog stated that the case should be held by December, no particular date has been fixed.
FTX’s Collapse Attracts More Regulators
Since the downfall of the beleaguered FTX, several regulatory bodies in several countries have made moves to probe the company’s collapse and the crypto market at large.
Regulatory bodies in countries like the United States, Turkey, and the Bahamas are investigating matters surrounding the insolvency of FTX and its affiliated entities.
