The United States House Committee on Financial Services heard the testimony of John Ray III, the man in charge of cleaning up the mess at the bankrupt crypto exchange FTX. As the new CEO and Chief Restructuring Officer, Ray has been going through the company’s records since 11 November. An utter failure of corporate controls […]
of John Ray III, the man in charge of cleaning up the mess at the bankrupt crypto exchange FTX. As the new CEO and Chief Restructuring Officer, Ray has been going through the company’s records since 11 November.the U.S. Congress that he had never seen such an utter failure of corporate controls in his entire career. Coming from the man who was appointed to clean up the infamous Enron scandal, this statement shows the kind of management that took place under Sam Bankman-Fried.
“The collapse of FTX appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company entrusted with other people’s money or assets,” he said.The new CEO revealed that more than $7 billion were lost in the collapse of the exchange. He clarified that a full recovery of funds was highly unlikely.
Ray also informed the lawmakers that between 2021 and 2022, nearly $5 billion were spent by FTX on a string of acquisitions, real estate purchases, loans to top executives; more than a billion dollars have been recovered by the restructuring team so far.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The FTX money trail: Bankruptcy lawyers shift attention to these FTX doneesIf guilty, several representatives that accepted donations from FTX would be forced to return them SBF’s personal donation amounted to $40 million as per reports It has been a little over a month since Bahamas-based crypto exchange FTX filed for Chapter 11 bankruptcy. However, during the same time, creditors of the exchange have anxiously waited […]
Read more »
Poor management, inexperienced leadership led to FTX’s collapse, new CEO tells U.S. lawmakersNew FTX CEO John Ray told U.S. lawmakers on Tuesday that there was virtually no distinction between the operations of FTX and Alameda Research, Sam Bankman-Fried’s crypto trading firm
Read more »
Former FTX CEO Bankman-Fried arrested in Bahamas as U.S. presses criminal chargesThe U.S. Attorney\u0027s office in Manhattan confirmed Bankman\u002DFried had been arrested in The Bahamas. Find out more.
Read more »
Former FTX CEO defrauded crypto investors, SEC allegesSam Bankman-Fried, the former CEO of cryptocurrency platform FTX, orchestrated a years-long fraud by diverting investors' funds to his private hedge fund and using them to make venture investments, lavish real estate purchases and large political donations, the U.S. Securities and Exchange Commission alleged Tuesday in a complaint.
Read more »
Former FTX CEO defrauded crypto investors, SEC allegesSam Bankman-Fried, the former CEO of cryptocurrency platform FTX, orchestrated a years-long fraud by diverting investors’ funds to his private hedge fund and using them to make venture investments, lavish real estate purchases and large political donations, the U.S. Securities and Exchange Commission alleged Tuesday in a complaint.
Read more »
Former FTX CEO Sam Bankman-Fried defrauded crypto investors, SEC allegesThe former CEO of failed cryptocurrency firm FTX, Sam Bankman\u002DFried, was arrested Monday in the Bahamas at the request of U.S. government.
Read more »