Testimony of John Ray III, the new CEO of FTX.publicly disclosed Court documents show that Alameda Research borrowed client money. FTX for unlimited trade and investment
Ray’s testimony highlights what the CEO refers to as “Unacceptable management practices” within the company. The statement also reveals that the assets of FTX clients can still be accessed by Alameda Research with unlimited access.
The document states that “Alameda, a hedge fund within the FTX Group, has the ability to borrow money at FTX.com for trading or investment purposes without any restrictions.”
Ray revealed that access to those funds was not protected by management at all. According to the statement, “There is a computer infrastructure that is open to people at the senior management level. able to access the system used to store customer assets.”
Additionally, Ray revealed that “private keys used to access users’ hundreds of millions of dollars worth of crypto assets” are not secure as they are not encrypted.
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