US senators are calling on the Justice Department to hold FTX accountable to the fullest extent of the law for the massive collapse

US senators are calling on the Justice Department to hold FTX accountable to the fullest extent of the law for the massive collapse

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

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

“Given the department’s commitment to holding perpetrators of white-collar crime personally accountable,
we expect the DOJ to investigate the actions leading to the collapse of FTX with the utmost care.”

While it remains unclear what exact laws FTX and its CEO Sam Bankman-Fried broke and whether they are within US jurisdiction, the senators are calling on the department to pursue prosecution.

“As this situation unfolds, new facts will undoubtedly shed more light on how Bankman-Fried and his associates’ deception has harmed FTX’s customers, and the customers of any company exposed to the contagion – and may reveal that the 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 deemed necessary, prosecute the individuals responsible for their harm.”

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, crypto is no different than other schemes promoted by criminals and charlatans.

“Proponents say crypto holds great promise for making the financial system more efficient and inclusive. May be. But we’ve heard that story before. History is littered with financial schemes promoted by criminals and charlatans who claimed the latest and greatest tools had evolved beyond the need for regulation or a cop on the beat. During the collapse of 2008 and every financial crisis before that, these claims have been shown to be dangerously delusional. Crypto is no exception.”

FTX collapsed earlier this month after rapid withdrawals exposed the exchange as insolvent.

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