US senators urge Justice Department to hold FTX accountable to full extent of law in massive meltdown

US senators urge Justice Department to hold FTX accountable to full extent of law in massive meltdown

Two US senators are publicly calling on the Justice Department to hold disgraced and bankrupt crypto exchange FTX responsible for its massive meltdown earlier this month.

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

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

While it’s still unclear what exact laws FTX and its CEO Sam Bankman-Fried violated and whether they fall under US jurisdiction, the senators are asking the Department to press charges.

“As this situation unfolds, new facts will no doubt shed light on how the deception of Bankman-Fried and his associates harmed FTX clients and the clients of any business exposed to the contagion – and could reveal that problems with the crypto industry extend far beyond FTX.17 We urge the Department to center these “flesh and blood victims” as it investigates and, if found necessary, to prosecute the persons responsible for their damage.”

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, cryptography is no different from 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 have heard this 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 spot. During the crash of 2008 and all the financial crises that preceded it, these claims proved to be dangerously delusional. Crypto is no exception.

FTX collapsed earlier this month after rapid withdrawals exposed the exchange’s insolvency.

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