US Senators Urge Department of Justice To Hold FTX Accountable to Full Extent of the Law for Massive Collapse

Two US Senators are publicly calling upon the Justice Department to hold disgraced and bankrupt crypto exchange FTX accountable for its massive collapse earlier this month.

In a letter addressed to Attorney General Merrick Garland and Assistant Attorney General Kenneth Polite, Jr., Senators Elizabeth Warren and Sheldon Whitehouse say that FTX’s executives should face the full extent of the law.

“Given the Department’s commitment to holding perpetrators of white-collar crime personally accountable,
we expect DOJ to investigate the actions leading to the collapse of FTX with the utmost scrutiny.”

While it’s still unclear which exact laws FTX and its CEO Sam Bankman-Fried violated and whether they are within US jurisdiction, the Senators ask the Department to persue prosecution.

“As this situation unfolds, new facts will undoubtedly shed more light on how Bankman-Fried and his associates’ deception has harmed FTX’s customers, and customers of any company that was exposed to the contagion – and may reveal that the problems with the crypto industry extend well beyond FTX.17 We urge the Department to center these “flesh-and-blood victims” as it investigates, and, if it deems necessary, prosecute the individuals responsible for their harm.”

Senator Warren also wrote an op-ed in the Wall Street Journal on Tuesday, reiterating her critical stance on the crypto industry. According to the Massachusetts Senator, crypto is no different than other schemes promoted by criminals and charlatans.

“Proponents say crypto holds great promise for making the financial system more efficient and inclusive. Maybe. But we’ve heard that story before. History is littered with financial schemes promoted by criminals and charlatans who claimed that the latest and greatest tools had evolved beyond the need for regulation or a cop on the beat. During the 2008 collapse and every financial crisis before that, these claims have proved dangerously delusional. Crypto is no exception.”

FTX collapsed earlier this month after rapid withdrawals exposed the exchange as insolvent.

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