John Ray attributes the collapse of the cryptocurrency group to the “concentration of absolute control in the hands of a very small number of inexperienced individuals.”
The former executives of the FTX cryptocurrency exchange, now in bankruptcy, a “total failure” At all levels of control, their new boss said on Monday that they actually spend their customers’ money without counting. At this point there are still many questions about the cause of the group’s implosion and an investigation is ongoing, John Ray wrote in a document released ahead of a congressional hearing.
The site’s founder and former boss, Sam Bankman-Fried, will be interviewed in due course as part of the process, he said. The latter, like John Ray, is scheduled to speak before a parliamentary committee of the House of Representatives on Tuesday. But at first glance, “The collapse of the FTX Group appears to have resulted from the concentration of absolute control in the hands of a very small number of inexperienced and unsophisticated individuals who did not implement any of the systems or controls required of a company in which people’s money or assets are trusted.”Underlines the responsible person.
FTX, considered one of the world’s leading cryptocurrency exchanges, was suddenly unable to return money deposited there to customers in early November. The group announced its bankruptcy filing on November 11. An investigation has already revealed that assets deposited by clients at FTX were mixed with assets of Alameda, a brokerage and crypto investments firm founded by Sam Bankman-Fried. Alameda happily dips into FTX client funds to make risky bets.
An “expense spree”
FTX Company and A “advertisement” By the end of 2021, $5 billion in companies and investments “It’s worth just one serving” that. Its new boss says the site has made more than $1 billion in loans or payments for people at the company.
For John Ray, who oversaw several bankruptcy proceedings, including that of the former US energy giant Enron, the objective is now “Maximum Value” FTX still has assets to pay back as much as possible to the group’s customers and creditors. So far, there is a new management team “Over $1 Billion in Digital Assets Identified” Risk of theft or unauthorized transfer.