The US House Committee announced on November 16 that they will meet next December regarding the bankruptcy of FTX. Apart from what happened between FTX and Binance, the meeting will take place with topics on regulations. Before the hearing, new statements came from Binance CEO CZ and US Treasury Secretary Yellen.
Binance gives up on buying FTX due to ‘incorrect data’
Binance CEO CZ gave explanations about the acquisition process today. In an interview with CNBC, CZ stated that the data provided by FTX seems unreliable. He also said that user funds were misused.
CZ, who played an active role in the crisis, says the data provided by FTX is insecure. During the discussion about Binance’s potential takeover of FTX, he said it was clear that the funds were being misused. The Binance team eventually withdrew from the deal after announcing that his company was considering acquiring FTX. Binance blamed errors in its due diligence process for withdrawing from the takeover.
US Treasury Secretary Janet Yellen says reports foreshadow the collapse
Treasury Secretary Janet Yellen stresses the “need for more effective oversight of cryptocurrency markets.” In a statement Wednesday, he noted that reports generated by the Treasury Department at the behest of President Biden foretold the collapse of FTX:
Some of the risks we identified in these reports, including the arrival of client assets, lack of transparency and conflicts of interest, were at the center of the crypto market stresses observed over the past week.
Despite these reports, there is no comprehensive framework yet to gather cryptocurrencies under a single regulation. Previously, US regulators such as the SEC and CFTC have occasionally imposed sanctions against crypto companies. They were late in issuing specific guidance to crypto companies and exchanges. Meanwhile, federal lawmakers are currently working on legislation that would clarify crypto regulation. Such a bill has not yet been voted on. In this context, Treasury Secretary Janet Yellen says the first duty of regulators is customer safety:
We have many consumer and investor protection laws. The same shield of protection should begin to apply to cryptocurrencies and related services.
Regulators want more information from exchanges
CZ and Treasury Secretary Janet Yellen’s statements followed the US House Committee’s November 16 announcement. cryptocoin.com We have covered the details of the meeting, which will focus on the bankruptcy of FTX, in this article. Binance representatives will also be present at this meeting to testify. The House Committee would like to learn more about what is currently happening between exchanges. Binance caused panic by publicly announcing that it would sell its FTT tokens before buying the rival exchange.
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