Poor management practices and inexperienced leaders led to FTX's implosion, the crypto exchange's new chief executive told lawmakers on Tuesday, shortly after U.S. regulators charged founder Sam Bankman-Fried with defrauding investors.
and violated campaign finance laws. The former CEO of the exchange also faces additional charges by U.S. regulators.FTX Group CEO John J. Ray III speaks at a U.S. House Financial Services Committee hearing investigating the collapse of the now-bankrupt crypto exchange FTX after the arrest of FTX founder Sam Bankman-Fried, on Capitol Hill in Washington, U.S. December 13, 2022.
He also told lawmakers on Tuesday that FTX will look to sell its crypto derivatives exchange LedgerX, which is regulated by the U.S. Commodity Futures Trading Commission and was not included in the bankruptcy proceedings. "Unfortunately, the timing of his arrest denies the public the opportunity to get the answers they deserve," said the panel's chair, Democratic U.S. Representative Maxine Waters.
Representative Patrick McHenry, ranking Republican on the House Financial Services Committee, described "old-school fraud" behind the fancy trappings of cryptocurrency trading at FTX.
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