FTX co-founder Sam Bankman-Fried is expected to testify before Congress to explain the collapse of his cryptocurrency empire, D-Ohio Sen. Sherrod Brown told Fox News Tuesday.

Bankman-Fried’s FTX, the third-largest cryptocurrency trading firm in the world, vanished within days last week, leading to a bankruptcy filing and Bankman-Fried’s resignation. The former billionaire was a top donor to Democrats and is now facing criminal investigations into mismanaged funds at the company.

Brown argued that the Senate must exercise aggressive oversight of cryptocurrency companies moving forward, but said many senators accept donations from such groups.

“It’s hard when a lot of members here, especially the more pro-bank and pro-corporate members, have been taking money from crypto companies and singing their praises on the Senate floor,” Brown told Fox of his efforts. to crack down on cryptocurrency companies. “That’s the fundamental problem. That’s why I’m pushing, especially pushing, the [Securities] Exchange Commission (SEC) to crack down and make sure they are held accountable for what they did.”

INSIDE THE CRYPTO EXCHANGE FTX COLLAPSE: EVERYTHING YOU NEED TO KNOW

Sam Bankman-Fried,

Sam Bankman-Fried, founder and former CEO of FTX Cryptocurrency Derivatives Exchange (Jeenah Moon/Bloomberg via/Getty Images)

Sherrod Brown

President Sherrod Brown asks questions during a Senate Banking, Housing and Urban Affairs Committee hearing on Capitol Hill, Nov. 18, 2021. (Jim Watson/AFP via Getty / Getty Images)

When asked if Bankman-Fried should testify, Brown said he should “at some point.”

“He’s testified before, and I’m not going to single him out, but I think a lot of them need to explain what they’ve done,” she continued.

In addition to potential SEC scrutiny, FTX is facing a criminal investigation in the Bahamas, where it is headquartered.

FTX was the third largest cryptocurrency market in the world early last week when it announced liquidity problems and said it would need a massive cash infusion to stay afloat.

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Binance, the world’s largest cryptocurrency marketplace, initially stepped in and offered to buy the company, but backed out of the deal after reviewing FTX’s finances.

Reuters, citing two people familiar with the matter, reported that at least $1 billion in client funds had disappeared, and people told the news outlet that Bankman-Fried had secretly transferred $10 billion of client funds from FTX to its trading company, Alameda Research.

FTX and cryptocurrencies logo

FTX was the third largest cryptocurrency market in the world early last week when it announced liquidity problems. (Reuters/Dado Ruvic/Illustration)

The two sources told Reuters that Bankman-Fried – in a meeting he confirmed to have taken place – shared documents with other top executives that revealed the financial hole.

Spreadsheets reportedly showed this between 1 and 2 billion dollars some of the funds were not recorded in Alameda’s assets and that the spreadsheets did not indicate where the money had been transferred.

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FTX is also reportedly facing potential investigations by the Justice Department and the SEC.

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