Why did FTX collapse?

FTX, one of the world’s largest cryptocurrency exchanges, collapsed with stunning speed this month. A run on deposits left the company owing customers $8 billion, setting off a chain of events that has shaken the crypto world and driven investigations by the Securities and Exchange Commission and the Justice Department.

Will the house look into FTX's actions?

The House will look into FTX's actions. The US House of Representatives Financial Services Committee will hold a hearing about the bankruptcy filing of crypto exchange FTX in December, the committee announced Wednesday. The hearing will investigate the collapse of FTX, as well as the ramifications of the company filing for bankruptcy.

What will the FTX committee look for?

It will also look into the ecosystem of digital assets, which has minimal government regulations. The committee plans to hear from FTX founder and former CEO Sam Bankman-Fried, as well as from individuals from his trading firm Alameda Research and from Binance, the largest crypto exchange.

How will the FTX fiasco affect cryptocurrencies?

The broader consequences of the FTX fiasco for the cryptocurrency industry will take time to unfold. As the largest collapse in the short history of cryptocurrencies, FTX may further deter investors, who already are cautious because of concerns about stability and security.