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- New FTX CEO John Ray III called FTX collapse an “old-fashioned embezzlement,” at the hearing.
- The crypto exchange’s truth is coming out via investigations.
What did the new CEO disclose?
The new CEO of the now-bust crypto exchange FTX, John Ray III has highlighted the lack of proper documents at the exchange and that the crash was like an “old-fashioned embezzlement.”
The former CEO and co-founder Sam Bankman-Fried of FTX and its trading arm, Alameda Research resigned just a day before filing for bankruptcy under Chapter 11 on November 11. The new CEO, John Ray III, famously known for managing American energy titan Enron’s bankruptcy phase, told authorities that the company had “no record-keeping whatsoever.”
Soon after taking over the crypto exchange FTX, Ray stated, that “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”
According to CNBC, John Ray III said in a blistering testimony, that “This is really just old fashioned embezzlement. This is just taking money from customers and using it for your own purpose. Not sophisticated at all.”
“Sophisticated, perhaps in the way they are hiding something, frankly, right in front of their eyes. This is just plain old embezzlement. Old school, old school.”
Bad Days For Crypto ‘BAD BOY
As reported by CNN Business, SBF was arrested on Monday, and has been indicted on eight criminal charges in the Bahamas, according to the U.S. Attorney of the Southern District of New York. They disclosed that the broke ex-CEO used his hedge funds as his “personal piggy bank.” As per the congressional statutory maximum sentencing guidelines he may face up to 115 years in prison.
CNN also reported that the Bahamas Security Commission accused John Ray III of making “misstatements,” and recommending not to hinder the process of investigation in the FTX collapse. The authorities noted that Ray is “aware that the full email reveals Mr. Bankman-Fried’s acknowledgement that he had not briefed the Securities Commission.”
According to the Washington Post, the Justice Department accused the 30-year-old SBF, of multiple crimes – of violating campaign finance laws, money laundering, fraud and conspiracy. Further, the Commodity Futures Trading Commission (CFTC) filed accusations of fraud against him and also the United States Securities and Exchange Commission (SEC) alleged that he “defrauded his investors.”
John Ray III and the panel’s sole witness in the hearing at the House Financial Services Committee noted that the employees used Slack for invoices and a bookkeeping software Quickbooks to track its multibillion-dollar portfolio.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
