Raja Krishnamoorthi’s letter reads, ”I am extremely troubled by recent news surrounding the collapse of FTX Trading Ltd. (FTX), including its affiliated entity FTX US, and the potentially significant harm that FTX’s bankruptcy will cause to American consumers and investors.“
Raja Krishnamoorthi, the Chair of the Subcommittee on Economic and Consumer Policy, issued a letter to FTX’s former and current CEOs requesting more information on FTX’s collapse.
The subcommittee chairman has demanded a “detailed description” of FTX’s plans to recover its clients’ assets. This includes details on the estimated percentage of assets that FTX will be able to repay its customers.
Krishnamoorthi requested full disclosure of the inputs received from Caroline Ellison, CEO of Alameda.
He has also pressed the FTX Group to disclose all documents relating to the exchange’s finances and its liquidity issues, adding,
“FTX’s customers, former employees, and the public deserve answers.”
Additionally, he has requested FTX to provide details of the “backdoor” that has allowed the clandestine transfer of funds.
Krishnamoorthi has asked FTX to submit the requested information by December 1.
Senators Elizabeth Warren and Richard Durbin have also sent similar letters to FTX officials. Besides seeking information about FTX’s bankruptcy, they have also probed the relations between FTX and Alameda Research.
Meanwhile, FTX's bankruptcy hearing will be held in Delaware Court on November 22.
