The new CEO John Ray, responsible for the restructuring of the crypto currency exchange FTX, made striking claims about the previous leaders about the collapse of the company in his statements.
Failed Management
The company’s new CEO is John J. Ray III, in a speech prepared for a hearing to be held on Tuesday before the House Financial Services Committee, made a statement on behalf of the FTX exchange’s current situation, suggesting that it was caused by the failures of previous managers. The new CEO of the bankrupt crypto currency exchange, John Ray, made the following statements in his statements:
The collapse of the FTX Group seems to be due to the absolute concentration of control in the hands of a very small group of largely inexperienced and uninformed individuals.
FTX Defense
However, John Ray, in his defense prepared for the trial, made shocking statements about the storage of crypto currencies by the user assets of the crypto currency exchange, its sister company Alameda and investors, and included the following statements in his statements:
If we list the mistakes made by the former CEO and managers of the company, I can say that in the first place, the assets of the users and the balances of the crypto hedge fund Alameda are mixed together. In addition, Alameda’s user funds were used in highly leveraged transactions, leading to serious losses. In addition, the company has not stored the unique keys of cryptocurrencies in environments with a sufficient level of security. FTX Group embarked on a spending spree from late 2021 to 2022, spending about $5 billion during this time, acquiring numerous businesses and investments, many of which may be worth only a fraction of the money paid for.
Finally, the crypto currency exchange discussed the issues that FTX is weak in terms of security and said the following:
FTX, a structure has been created that provides senior management with access to systems that store customer assets. Loans and other payments in excess of $1 billion have been made to insiders.
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