In a recent congressional appearance, the new CEO of FTX, John Ray III, displayed some insane findings of how inadequately FTX was mismanaged by Sam Bankman-Fried and the staff at the failed crypto exchange. Being that SBF is now being detained by the Bahamian government, he was not able to stand in-front of congress himself.
Cleaning Up The Kids’ Mess
Ray stated that he had never seen in his entire career such an utter failure of corporate controls. This is coming from the man that was put in charge of cleaning up the debacle that was Enron. Did anyone expect anything less after all that has been happening?
Ray stated that: “The collapse of FTX appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company entrusted with other people’s money or assets,” he said.
He stated that in the collapse of the exchange that over $7 BILLION was lost and went on to say that a recovery of funds is very unlikely to happen. Due to the extremely poor management, the recovery team is having a hard time tracking down the lost funds.
Buying Real Estate, Companies, And Making Loans
John Ray also informed congress that between 2021 and 2022, nearly $5 billion were spent by FTX on a string of acquisitions, real estate purchases, and loans to top executives. This was all done with customer funds. More than a billion dollars in assets have since been recovered by the team, but hasn’t made the dent in the recovery
The Political Agenda
FTX and SBF were known Democratic party supporters and much of the missing funds went to political donations to various candidates and lawmakers. When asked by the press if the Biden administration would return donations from SBF and FTX, Press Secretary Karine Jean-Pierre gave no clear answer, meaning no.
The connection between SBF and Gary Gensler of the SEC is still up in the air. Enough so that Congressman Tom Emmer has called on SEC Chair to testify before Congress. According to Congressman Emmer, Gensler must answer for the regulatory failures of his agency that failed to stop this unfortunate event. Emmer is a long-time supporter of the crypto industry and emphasized that the problem is with the centralized players, not with the technology itself.
SBF Blames Ray For The FTX US Downfall
Forbes released the intended testimony of SBF to congress in light of him not being able to testify himself. The testimony blamed John Ray and his team for jeopardizing the American customers by adding FTX US to the bankruptcy proceedings. According to the former CEO, the American subsidiary is still solvent and its customers can be made whole immediately.
We know by now that SBF doesn’t know how to take responsibility for himself so why wouldn’t he want to try and place blame on someone else? Just like a spoiled little child to blame someone for their actions.
Nothing said is financial advice.
This is for educational and recreational purposes only!
Stay safe in these volatile markets and don’t get rekt!
Follow the markets and get the latest data and news on Coin Logic
Any videos will be posted to Coin Logic TV on YouTube in addition to 3Speak:
Trade with me on Apollo X on BSC