“While we cannot comment on current events in the crypto markets or the details of ongoing investigations, we are investigating several companies for possible misconduct related to digital assets,” an FTC spokesperson said in a statement to The edge Tuesday. “We cannot comment on the nature of the investigations.”
“We are investigating several companies for possible digital asset misconduct”
The FTC declined to identify the companies currently under investigation or the nature of the probes. But the agency could use its authority to enforce truth in advertising rules to rein in the industry. Last month, an FTX client sued founder Sam Bankman-Fried, along with a handful of celebrity endorsers like Tom Brady, for allegedly recruiting consumers to invest in a Ponzi scheme.
The House Financial Services Committee, chaired by Rep. Maxine Waters (D-CA), will hold a hearing next week on the fallout from the FTX collapse. On Sunday, Bankman-Fried promised to testify before the committee, but he promised not to participate in the December 13 hearing.
“Once I’m done learning and reviewing what happened, I would feel it was my duty to come before the committee and explain,” said Bankman-Fried. “I’m not sure that will happen on the 13th. But if so, I will testify.”
Waters replied to Bankman-Fried on Monday: to write“Based on your role as CEO and your media interviews over the past few weeks, it is clear to us that the information you have so far is sufficient for testimony.”
At the time of publication, neither the committee nor Bankman-Fried have confirmed whether the founder of FTX will attend next week’s hearing.