Member of the U.S. House of Representatives Brad Sherman has accused cryptocurrency billionaires of lobbying in Washington to curb regulation of the digital asset industry.
The collapse of #FTXone of the largest cryptocurrency firms in the world, is a dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them.
Read my full statement ⬇️https://t.co/rcALYHoM2U
— Congressman Brad Sherman (@BradSherman) November 13, 2022
Sherman called for an investigation into the FTX crisis, bringing those responsible to justice, and more aggressive industry regulation.
“The sudden collapse of one of the largest crypto companies in the world was a dramatic demonstration of the risks of digital assets and critical weaknesses in the industry,” he wrote.
The congressman also recalled that in May, the head of FTX, Sam Bankman-Fried, announced plans to allocate up to $ 1 billion for the US presidential election in 2024. In October, he called his words “nonsense”.
According to the portal OpenSecretsBankman-Freed affiliates FTX US and Alameda Research donated $5.22 million and $6.24 million to Joe Biden’s 2020 presidential campaign fund.
Most of that money was spent on the primaries, Sherman said, “not helping the Democrats beat the Republicans.”
The congressman also revealed that FTX Digital Markets co-CEO Ryan Salame donated more than $23 million to Republican candidates in the 2022 US Senate elections.
“When you look at FTX’s efforts to influence Washington, you should look at both CEOs, not just the eccentric guy in shorts,” Sherman added.
Recall, on November 9, Bloomberg sources announced the start of an investigation into FTX by SEC and CFTC.
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