Democratic lawmakers on Monday called upon regulators to examine bank holding company SoFi Technologies, which owns a subsidiary cryptocurrency exchange.
Skepticism of the financial services company occurs after cryptocurrency platform FTX filed for bankruptcy following users’ discovery that trading firm Alameda Research borrowed millions in deposits to make investments, causing a liquidity crisis. Former FTX CEO Sam Bankman-Fried controlled both companies and allowed ex-girlfriend Caroline Ellison to lead the latter.
Sen. Sherrod Brown (D-OH), Sen. Jack Reed (D-RI), Sen. Chris Van Hollen (D-MD), and Sen. Tina Smith (D-MN), all of whom sit on the Senate Banking Committee, requested that SoFi CEO Anthony Noto provide information regarding compliance with banking law and determinations on appropriate levels of exposure to digital assets.
