Bankman-Fried’s Absence and Potential Congressional Hearings

Guess what? Sam Bankman-Fried, the poster child of regulatory nightmares, won’t be making it to the Senate Banking Committee on December 14. Apparently, he didn’t get the memo on responding in a timely manner. However, he might grace us with his presence a day earlier, on December 13, at the U.S. House of Representatives instead. This guy knows how to keep us on our toes!

Following a tweet thread with Representative Maxine Waters, the former CEO of FTX hinted at his willingness to testify. But let’s not forget that John Ray, the newly minted CEO of FTX who took the reins after the chaos erupted, will also be there to set the record straight—or at least try!

DOJ’s Fraud Investigation: The Plot Thickens

The drama doesn’t stop at Congress. The United States Department of Justice (DOJ) is reportedly on the hunt for some juicy details, looking into potential fraud allegations related to Bankman-Fried. Rumor has it he might have been funneling funds offshore just days before FTX filed for bankruptcy.

• DOJ has already met with FTX’s court-appointed overseers.
• They are investigating possible unlawful transfers to Alameda Research.

It sounds like Bankman-Fried’s legal team is going to need a bigger boat—and maybe some lifeboats while they’re at it!

Dark Money Donations: More Trouble for Bankman-Fried

Adding to the growing list of woes, a watchdog group believes Bankman-Fried is also guilty of “dark money donations.” They tossed a complaint at the Federal Election Commission claiming he made anonymous donations to the Republican Party during the last electoral cycle. Talk about silent but deadly!

“Direct and serious violations of the Federal Election Campaign Act” – Citizens for Responsibility and Ethics in Washington

And guess what? Bankman-Fried himself admitted it in a recent interview. You’ve got to hand it to him; at least he’s consistent.

New Bills Target Consumer Protection in Crypto

Meanwhile, Ritchie Torres, a U.S. Representative, is trying to revamp the crypto landscape by introducing some new bills aimed at securing consumer interests in the crypto space. The Crypto Consumer Investor Protection Act and the Crypto Exchange Disclosure Act aim to prohibit mishandling of customer funds by exchanges and enforce the disclosure of proof of reserves to the SEC.

Torres has also called for an accountability review of the SEC’s alleged shortcomings in protecting investors from FTX’s debacle. Sounds like he’s had just about enough of this nonsense!

Celsius Gets an Extension for Restructuring

In other news, bankrupt crypto lender Celsius has received a blessing from the court, extending its exclusivity period until February 15, 2023, allowing it additional time to prepare a Chapter 11 restructuring plan. They’ve requested approval to sell stablecoins, all in a bid to keep their operations afloat. Imagine being that desperate for liquidity while everyone else is hoarding cash!

Ripple vs. SEC: The Final Countdown

Finally, the showdown between Ripple and the SEC is winding down. Ripple just filed its final submissions in their ongoing court battle, stating the SEC has failed to provide adequate evidence to classify its offering of XRP as a security under federal law. They’re hoping for a win, and frankly, so are we, because more courtroom dramas are the last thing we need.