FTX CEO John Ray has refuted Sam Bankman-Fried’s argument that FTX US has sufficient reserves to reopen withdrawals to its users. According to testimony before the House Financial Services Committee on Tuesday.
The CEO identified major structural flaws that led to the collapse. in a statement atisWritten before his appearance before the House Financial Services Committee.
“There is a question why all of FTX Group’s subsidiaries are included in the Chapter 11 bankruptcy filing, specifically FTX US,” Ray said. “The answer is because FTX US is not independent of FTX.com.”
He also linked issues related to FTX’s involvement with Alameda Research that led to the downfall. “Client assets from FTX.com are mixed with assets from the Alameda trading platform,” he said.
Ray also identified an “absolute failure of organizational control at all levels” that precluded his diagnosis. Including making incomplete documents for “Nearly 500 investment-related transactions with FTX Group funds and assets.”
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