The US Congress is investigating the role that crypto exchange Binance has played in the collapse of FTX, one of its main competitors, The Block has reported citing Patrick McHenry, a member of the House of Representatives.
According to him, Binance CEO Changpeng Zhao's public statements on the situation with FTX will be the focus of hearings in December.
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He has highlighted:
"This is serious. I think that this is a major event."
The collapse of the FTT token on the FTX exchange, followed by a liquidity crisis on the platform, followed the November 6 announcement by Binance's CEO that the company intended to dump the asset.
Binance ignored Alameda Research's offer to buy its FTT and also abandoned the proposed acquisition of the distressed platform.
Shortly thereafter, on November 11, FTX's parent company, Alameda Research, and approximately 130 other affiliated companies filed for bankruptcy.