There have been reports that the cryptocurrency exchange Binance is being investigated by Congress for its part in the failure of FTX. Charles Hoskinson, the man who helped conceptualize both Cardano and Ethereum, has voiced his disbelief and indignation at the situation.
Hoskinson quoted the following from a tweet that shared the news:
“So first the NYT gives SBF a full pass and now it’s Changpeng Zhao’s fault? This is a fucking joke. The punchline is that we all get a 50 billion dollar bill and SBF gets to keep having low rent eyes wide shut parties.”
In light of allegations that Binance was complicit in the collapse of FTX, the Congress of the United States has decided to open an inquiry against the cryptocurrency exchange. A great number of crypto fans seem to have the misconception that Changpeng Zhao (CZ), CEO of Binance, was some sort of savior for the cryptocurrency world. This comes as a great source of dismay for these individuals.
Binance’s participation in the unexpected breakdown will be one of the main topics of discussion at the hearing that will take place in December, as was revealed this morning in the House of Representatives by Republican Representative Patrick McHenry of North Carolina.
As a result of the recent volatility in the cryptocurrency market, one of the largest cryptocurrency exchanges in the world, FTX, was forced to shut down after it was discovered that the company and related investment funds had engaged in borrowing and lending practices that were extremely risky and unsustainable. A few days ago, the company and many of its affiliated companies, including Alameda and BlockFi, submitted their bankruptcy petitions.
