Tuesday, February 7, 2023
HomeMarketFTX CEO to Testify About 'Utter Failure' He Found

FTX CEO to Testify About ‘Utter Failure’ He Found

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FTX Group CEO John J. Ray III plans to tell Congress on Tuesday that the defunct cryptocurrency exchange had “unacceptable management practices,” including a lack of internal controls.

Ray, a lawyer who helped unwind the collapsed energy giant Enron 20 years ago, also plans to tell lawmakers that he has never seen a corporate failure like FTX in his 40 year career.

Ray took the helm of FTX after it filed for bankruptcy in November. He and former FTX CEO and founder are scheduled to testify to the House Financial Services Committee Tuesday morning.

According to his prepared comments released Monday, Ray said that while the investigation is ongoing and many questions remain, the internal review has discovered that FTX’s customer assets were commingled with an affiliated trading firm, Alameda, and used to engage in margin trading, without the usual accounting and financial controls.

This is a developing story. Check back here for more details.

Credit: marketwatch.com

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