After FTX’s bankruptcy, John J Ray III took charge of FTX, becoming the new CEO. In fact, he was a Chicago-based lawyer who managed Enron Corp’s liquidation back in 2001 when it collapsed.

John J Ray III’s Comment on FTX

However, JJ Ray’s comments about the company are nothing short of disappointing. Ray said that the company’s failure came from the concentration of control in a very small group.

Furthermore, this is a group of grossly inexperienced and unsophisticated individuals.

He further added that he had never seen such an “utter failure” of corporate controls. Ray also discovered some unacceptable practices at FTX.

For example, there are senior staff members gaining access to customer assets and poor private key management.

Furthermore, the assets of Alameda Research and FTX are all mixed up, allowing Alameda to trade using customer assets.

Ray also talked about FTX US. As a subsidiary company, it is in fact not operating independently of FTX as SBF has claimed.

He mentioned that the Chapter 11 bankruptcy was merely a safety net for SBF and his team to locate and secure the available assets. Now, John J Ray III will proceed to the House Financial Service Committee on Tuesday’s hearing.

FTX US “was not independent” of its parent company, new FTX CEO John Ray III plans to say in his testimony before the House Financial Services Committee.

After a month, much insider information about FTX is slowly coming to light. SBF on the other hand certainly did not expect his arrest so quickly. What will John J Ray III do to remedy the situation?

Today we will see what are the statement from all parties during the hearing along with details of the indictment.

FTX founder charged, denied bail

The founder of FTX has been charged, reports LinkedIn News.

Former FTX CEO Sam Bankman-Fried was denied bail on Tuesday by a magistrate judge in the Bahamas who said the former billionaire is a heightened flight risk. Earlier in the day, federal prosecutors in New York City unsealed a federal indictment charging Bankman-Fried with eight criminal counts, including wire and securities fraud, money laundering and conspiracy to defraud the U.S. Bankman-Fried was arrested in the Bahamas on Monday and is expected to be extradited to the U.S.

• Prosecutors in the Southern District of New York said Bankman-Fried used the crypto exchange to engage in criminal activity from 2019, and that from 2020 he tried to defraud the U.S. government by making illegal donations to political candidates.

• The Securities and Exchange Commission is also suing Bankman-Fried for defrauding investors.

• FTX’s new CEO, John Ray, told a congressional committee Tuesday that “old fashioned embezzlement” had taken place at the crypto exchange. He added that FTX has incurred losses “in excess of $7 billion.”

• At The New York Times’ DealBook Summit last month, Bankman-Fried admitted he “made a lot of mistakes,” but said he “did not ever try to commit fraud.”