US Congress investigates Binance’s involvement in FTX crash

The U.S. Congress is particularly scrutinizing the role of the cryptocurrency exchange Binance in the sudden collapse of the FTX, according to a senior House Republican, Patrick McHenry. The politician noted that the study of Binance’s influence on the problems with the Sam Bankman-Fried exchange will be one of the key topics at the December congressional hearings.

JUST IN — Binance’s role in the collapse of FTX is now under U.S. Congressional scrutiny: The Block

— Bitcoin Magazine (@BitcoinMagazine) November 16, 2022

After the collapse of the world’s third largest crypto exchange, many cryptocurrency experts predicted tighter regulatory control in the industry. Binance CEO Чанпен Чжао" href="https://noworries.media/biography/chanpen-chzhao/" data-bio-id="3681">Changpeng Zhao 's rhetoric on the transparency of crypto exchanges has led to a significant amount of public discussion. For example, Zhao called on exchanges to adopt the Merkle Tree Proof-of-Reserve (developed by Ethereum co-founder Vitalik Buterin) to ensure transparency for their customers. It is not surprising that the largest cryptocurrency exchange is being closely monitored by the US regulator. By the way, it has done this before. Zhao also strongly denied his involvement in the FTX collapse, arguing that his exchange «fell victim to the situation.»

As a reminder, the US and Bahamian authorities are considering extraditing the founder of the bankrupt FTX exchange, Sam Bankman-Fried, from the Bahamas to the US. The criminal charges against Mr. Fried include wire fraud. If the DOJ files criminal charges, the agency will be forced to issue an arrest warrant for all FTX top executives involved in any illegal actions. Mr. Benkman-Fried himself risks going to jail for 20 years.