FTX Update | U.S. Senate to Hold FTX Hearing on 12/1, Bahamas Agrees to Transfer FTX Restructuring Case to the U.S.

On the slightly positive side, it appears that U.S. authorities are showing concern over the FTX incident. The Senate Agriculture Committee will hold a hearing on 12/1, while Texas regulators are investigating FTX's celebrity endorsements. Additionally, it is reported that the Bahamian court is no longer opposing the transfer of the FTX restructuring case to the Delaware court in the United States.

U.S. Senate Holds FTX Hearing on December 1

The U.S. Senate Agriculture Committee will hold a hearing on December 1 on the topic of "Why Congress Needs to Act: Lessons Learned from the FTX Collapse," with Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), scheduled to testify.

Additionally, the Senate Banking Committee is also weighing a potential hearing on the same topic.

Alameda and FTX Combined Net Loss of $3.7 Billion Before 2022

Forbes cited bankruptcy court filings indicating that Alameda Research and FTX had a combined net loss of $3.7 billion before 2022. Last year, SBF told Forbes that Alameda made $1 billion in profit in 2020, and according to CNBC reports, FTX's leaked 2021 financials showed profitability with a net income of $388 million in 2021.

Bahamian Court No Longer Opposes Transferring FTX Restructuring Case to the U.S.

According to Bloomberg, Bahamian court officials are no longer opposing the transfer of a portion of the FTX restructuring case to a Delaware court in the U.S., with the liquidators reserving the right to oppose any actions taken by FTX executives in the Delaware case.

Foresight News previously reported that the liquidators of FTX's Bahamian subsidiary, FTX Digital Markets, had requested a New York court to recognize their bankruptcy in the Bahamas, stating that they "refuse to recognize" the validity of the exchange's U.S. bankruptcy proceedings.

Senators Urge Exclusion of Bitcoin from 401(k) Plans

U.S. Senators Richard Durbin, Elizabeth Warren, and Tina Smith wrote to Fidelity Investments CEO Abigail Johnson on November 21, once again requesting the company to reconsider its decision to allow 401(k) plan holders to invest in Bitcoin, citing the digital asset industry as filled with "charismatic prodigies, opportunistic charlatans, and self-proclaimed investment advisors."

Foresight News previously reported that in April of this year, Fidelity's investment plan allowed investors to open Bitcoin accounts in their 401(k)s. A 401(k) plan is a retirement benefit plan provided by U.S. companies to employees, allowing employers to establish a tax-deferred retirement savings plan for employees, which can be invested in funds, stocks, and other assets.

Texas Regulator Investigating Tom Brady and Steph Curry

According to Bloomberg, the Texas regulator is investigating celebrities involved in promoting FTX for potential securities law violations, including NFL player Tom Brady, NBA star Steph Curry, reviewing the compensation they received for endorsing FTX US and what information was disclosed, and how retail investors gained access to this information.

Foresight News previously reported that Tom Brady, Steph Curry, and others faced a class-action lawsuit for promoting unregistered securities, with the lawsuit alleging their "active involvement" in the sale of unregistered securities offered or sold through FTX in the form of profit accounts.

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