Current FTX CEO John Ray III laid the blame for the cryptocurrency exchange’s collapse on founder and former chief executive Sam Bankman-Fried and his top executives, telling Congress they gambled with customers’ money without any safeguards to protect their investments.
Ray testified before the House Financial Services Committee Tuesday as furious lawmakers have demanded explanations and promised to make heads roll after the company lost billions of dollars of customers’ money. FTX filed for Chapter 11 bankruptcy following a liquidity crisis caused by Bankman-Fried’s mismanagement of about $10 billion in customer funds.
“The FTX group’s collapse 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,” Ray said.
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