Congressman Calls FTX Founder a ‘Pathological Liar’

In an interview with CoinDesk TV’s “First Mover” on Wednesday, New York Democrat Representative Ritchie Torres called FTX ex-CEO Sam Bankman-Fried a “pathological liar.” 

A House Financial Services Committee member, Torres, said, “there’s evidence to suggest this much.”

Torres attended Tuesday’s House Financial Services Committee hearing on FTX’s collapse. 

The facts of FTX’s failure that Torres heard during the hearing confirmed his conclusion that Bankman-Fried “perpetrated a Ponzi scheme,” misusing millions of dollars from their customers.

“FTX had the corporate governance of a fraternity,” Torres claimed and added that “it would be laughable were it not so serious.”

Torres said that Bankman-Fried misled the public with a series of tweets by suggesting that FTX’s assets were sufficient to cover its debts. 

Torres claims that people thought “there was no problem” and that everything was stable. “He misled the public. He lied,” he added.

Once scheduled to speak before the committee, Bankman-Fried was arrested in the Bahamas on Monday following the filing of criminal charges by the United States on Tuesday. Wire fraud, money laundering conspiracy, and violations of campaign finance legislation are among the accusations.

Torres Received Donation from FTX

Sam Bankman-Fried became well known for his efforts to support the winning candidate in the United States Midterm Election just one week before the FTX crashed in the first week of November this year. 

While talking about campaign fundraising, it is vital to mention that SBF, the former CEO and creator of FTX, was apparently the third greatest contributor overall and the leading donor from the crypto field. 

Torres also received $2,900 in “unsolicited donations” from Bankman-Fried, as did a number of other members of Congress. He claimed the funds would be given to a local organization.

Torres stated: 

“My ties to him are minimal.” 

It is interesting to note that in March, he and seven other representatives from the House wrote to the Securities and Exchange Commission (SEC) to express their displeasure with the agency’s investigation into FTX and the U.S.-based cryptocurrency exchange Coinbase.