25 April, 2024



Highlight of FTX New CEO John Ray’s Prepared Statement For The Hearing

13 Dec, 2022

22 Nov, 2023

Today, December 13, the newly appointed CEO of FTX is testifying before Congress as part of a hearing. According to his prepared statement, client assets from FTX were mixed up with assets from the Alameda trading platform.

This was done without the customers’ knowledge. As a result of Alameda’s use of customer assets to participate in margin trading, customer funds were put at risk of suffering enormous losses.

Ray is also claiming that the FTX Group went on a spending binge sometime between the end of 2021 and the beginning of 2022, during which time approximately $5 billion was spent purchasing a wide variety of businesses and investments, the majority of which may only be worth a portion of what was paid for them at the time.

A total of over one billion dollars was given in the form of loans and other payments to company executives. FTX neglected to implement adequate security measures before storing some private keys to crypto assets. In addition, FTX made use of computer infrastructure that allowed senior management to have access to client asset storage systems.

Since Ray and his team took over for Sam Bankman-Fried a month ago, just around the time that the firm filed for bankruptcy, these are the things they’ve found out so far. And despite the fact that Sam Bankman-Fried has refuted the aforementioned allegation on many occasions in his most recent interviews, it seems as if Ray may have stumbled into compelling proof after making the assertion under oath on December 12.

Since FTX US did not operate separately from FTX.com, Ray made it clear that FTX US was also included in the Chapter 11. Ray said that the filing for bankruptcy helped keep FTX US’s current assets intact and stopped a potential bank run.

Today, December 13, the newly appointed CEO of FTX is testifying before Congress as part of a hearing. According to his prepared statement, client assets from FTX were mixed up with assets from the Alameda trading platform.

This was done without the customers’ knowledge. As a result of Alameda’s use of customer assets to participate in margin trading, customer funds were put at risk of suffering enormous losses.

Ray is also claiming that the FTX Group went on a spending binge sometime between the end of 2021 and the beginning of 2022, during which time approximately $5 billion was spent purchasing a wide variety of businesses and investments, the majority of which may only be worth a portion of what was paid for them at the time.

A total of over one billion dollars was given in the form of loans and other payments to company executives. FTX neglected to implement adequate security measures before storing some private keys to crypto assets. In addition, FTX made use of computer infrastructure that allowed senior management to have access to client asset storage systems.

Since Ray and his team took over for Sam Bankman-Fried a month ago, just around the time that the firm filed for bankruptcy, these are the things they’ve found out so far. And despite the fact that Sam Bankman-Fried has refuted the aforementioned allegation on many occasions in his most recent interviews, it seems as if Ray may have stumbled into compelling proof after making the assertion under oath on December 12.

Since FTX US did not operate separately from FTX.com, Ray made it clear that FTX US was also included in the Chapter 11. Ray said that the filing for bankruptcy helped keep FTX US’s current assets intact and stopped a potential bank run.

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