FTX CEO blames 'grossly inexperienced' owners for collapse, says customer money funded risky Alameda trades

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FTX CEO blames 'grossly inexperienced' owners for collapse, says customer money funded risky Alameda trades
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BREAKING: FTX CEO blames 'grossly inexperienced' owners for collapse, says customer money funded risky Alameda trades

John Ray, chief executive officer of FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing investigating the collapse of FTX in Washington, Tuesday, Dec. 13, 2022.said in his written testimony

The new FTX CEO said his investigation is still ongoing but has found several "unacceptable management practices" so farThe seasoned restructuring officer revealed that senior FTX management had access to customer assets they were able to redirect, held hundreds of millions of dollars of crypto access absent of security controls or encryption, and that Alameda was able to borrow funds from FTX for its own trading and investments "without any effective limits whatsoever.

Sam Bankman-Fried, co-founder and chief executive officer of FTX, in Hong Kong, China, on Tuesday, May 11, 2021. FTX, the digital-assets trading platform launched two years ago by Bankman-Fried, said it handled enough volume last month to make it one What is known, according to Ray's testimony, is that FTX was gambling with customer assets by commingling them with Alameda's and engaging in margin trading.

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