Dem Rep. Brad Sherman on FTX CEO: ‘We Have No Idea Where He Is’

SULLIVAN Now just moments ░░░░░░░░ The Wall Street Journal ░░░░░░░░ that Blockfi another exchange ░░░░░░░░ getting ready to file ░░░░░░░░ bankruptcy We contacted the ░░░░░░░░ they have no comment ░░░░░░░░ that report But Blockfi ░░░░░░░░ in Jersey City New ░░░░░░░░ once a high flyer ░░░░░░░░ to The Journal may ░░░░░░░░ ready to file for ░░░░░░░░ 11 bankruptcy protection Now ░░░░░░░░ of this particularly with ░░░░░░░░ is ratcheting up calls ░░░░░░░░ regulation It is expected ░░░░░░░░ be a key issue ░░░░░░░░ today s Senate Banking ░░░░░░░░ hearing on financial oversight ░░░░░░░░ bankruptcy filings overnight FTX ░░░░░░░░ it may owe money ░░░░░░░░ more than 1 million ░░░░░░░░ Now those creditors could ░░░░░░░░ from small investor like ░░░░░░░░ with maybe a couple ░░░░░░░░ bucks with them to ░░░░░░░░ or pension funds who ░░░░░░░░ be out more than ░░░░░░░░ billion dollars But will ░░░░░░░░ ever see a dime ░░░░░░░░ their money and what ░░░░░░░░ is being done to ░░░░░░░░ to find and at ░░░░░░░░ question Mr Bankman Fried ░░░░░░░░ some of his other ░░░░░░░░ Joining us now is ░░░░░░░░ Brad Sherman of California ░░░░░░░░ Member of the House ░░░░░░░░ Services Committee chairman of ░░░░░░░░ Subcommittee on Investor protection ░░░░░░░░ Capital Markets Congressman it ░░░░░░░░ great to have you ░░░░░░░░ on it s an ░░░░░░░░ time FTX SHERMAN Good ░░░░░░░░ be with you SULLIVAN ░░░░░░░░ was headquartered offshore it ░░░░░░░░ listed offshore it is ░░░░░░░░ offshore What power do ░░░░░░░░ or U S authorities ░░░░░░░░ or might have over ░░░░░░░░ Bankman Fried some of ░░░░░░░░ colleagues at FTX SHERMAN ░░░░░░░░ Fried is an American ░░░░░░░░ m sure that he ░░░░░░░░ a target of criminal ░░░░░░░░ I assume that he ░░░░░░░░ going to try to ░░░░░░░░ to Dubai or Argentina ░░░░░░░░ some other country without ░░░░░░░░ extradition treaty FTXUS is ░░░░░░░░ U S company But ░░░░░░░░ I have for many ░░░░░░░░ called for us to ░░░░░░░░ prohibit Americans from investing ░░░░░░░░ crypto Not only there ░░░░░░░░ an investor protection issue ░░░░░░░░ know some of your ░░░░░░░░ are going to make ░░░░░░░░ from time to time ░░░░░░░░ because of the effect ░░░░░░░░ it can have on ░░░░░░░░ ability to collect taxes ░░░░░░░░ bankruptcy laws and have ░░░░░░░░ the dollar play the ░░░░░░░░ role that is so ░░░░░░░░ to America SULLIVAN Do ░░░░░░░░ think he is a ░░░░░░░░ risk SHERMAN Oh yeah ░░░░░░░░ is a SULLIVAN Do ░░░░░░░░ think he s still ░░░░░░░░ the Bahamas because someone ░░░░░░░░ the jet that they ░░░░░░░░ might have been his ░░░░░░░░ don t know from ░░░░░░░░ to I think it ░░░░░░░░ Buenos Aires Argentina but ░░░░░░░░ do I believe have ░░░░░░░░ extradition treaty with United ░░░░░░░░ He s told Reuters ░░░░░░░░ was in the Bahamas ░░░░░░░░ we have any idea ░░░░░░░░ he is and if ░░░░░░░░ why not SHERMAN We ░░░░░░░░ no idea where he ░░░░░░░░ because he s still ░░░░░░░░ of dollars and he ░░░░░░░░ using that money to ░░░░░░░░ himself somewhere where we ░░░░░░░░ t catch him SULLIVAN ░░░░░░░░ I want to be ░░░░░░░░ because we want to ░░░░░░░░ very careful here on ░░░░░░░░ least on my side ░░░░░░░░ the camera congressman You ░░░░░░░░ say what you want ░░░░░░░░ know for us these ░░░░░░░░ allegations right now We ░░░░░░░░ there s money missing ░░░░░░░░ charges have been filed ░░░░░░░░ sounds like you believe ░░░░░░░░ there will be criminal ░░░░░░░░ filed soon SHERMAN I ░░░░░░░░ t know how soon ░░░░░░░░ I don t know ░░░░░░░░ he will be in ░░░░░░░░ jurisdiction where we can ░░░░░░░░ him But it appears ░░░░░░░░ if money that should ░░░░░░░░ been segregated and held ░░░░░░░░ customers was instead diverted ░░░░░░░░ high risk bets placed ░░░░░░░░ the by the the ░░░░░░░░ company This is this ░░░░░░░░ shows that we need ░░░░░░░░ although frankly the money ░░░░░░░░ power still in Washington ░░░░░░░░ with the crypto billionaire ░░░░░░░░ And I think we ░░░░░░░░ be fortunate if we ░░░░░░░░ just avoid passing bad ░░░░░░░░ because they are so ░░░░░░░░ to get They really ░░░░░░░░ to they really want ░░░░░░░░ patina of regulation They ░░░░░░░░ so much now to ░░░░░░░░ to restore their credibility.”