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Breaking: John J. Ray, new CEO of FTX, blasts SBF ahead Of Congressional Hearing

John J. Ray III, an official responsible for reorganizing the collapsed cryptocurrency giant FTX, informed lawmakers that the company’s catastrophic collapse was due to failures by its former management. The prepared remarks of the new CEO of FTX were released ahead of tomorrow’s Congressional hearing. SBF has confirmed that he will testify, but it is not physically.
Governance is lacking
John Ray repeated his earlier remarks about the lack of governance under Sam Bankman Fried’s leadership in his remarks to the House Financial Services Committee.

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He stated that
The collapse of the FTX Group appears to have been caused by an absolute concentration of control in the hands a small number of inexperienced and unsophisticated individuals.
Ray also clarified that FTX US, an American branch of the exchange, was a part Chapter 11. FTX US was not independently managed by FTX(. Ray stated that the bankruptcy filing helped preserve present assets and prevent a “bank run on FTX USA.”
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John J Ray’s Scathing Remarks
Ray also highlights some of the FTX Group’s inappropriate management practices. These activities included the use of computer infrastructure to give senior managers access to customer assets storage systems; without security controls to prevent them redirecting those assets.
Ray noted that private keys that could access hundreds of millions of dollars worth of cryptocurrencies were kept without any security measures or basic encryptions.

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Read More: FTX News – SBF Says Senate Hearing Not Currently Scheduled for Attendance
He also explained how Alameda Research was able to borrow funds from the FTX crypto exchange. These funds were later used for its own trading and investment without any restrictions.
The Final Straw
The most notable is the active “commingling” of assets that occurs in the FTX empire, which is under the control of SBF.
Read More: SBF Jail – Is FTX founder Trying to Escape Arrest with Virtual Testimony
Although Sam Bankman-Fried denied the above claim in several interviews, Ray may have offered strong evidence after he said it under oath Monday afternoon.

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