FTX CEO John Ray will tell lawmakers on Tuesday that the bankrupt cryptocurrency exchange had 'unacceptable management practices' including the commingling of assets and lack of internal controls, according to prepared remarks published Monday by the U.S. House Financial Services Committee.
Ray in his prepared remarks said that theappeared to stem from the concentration of control "in the hands of a very small group of grossly inexperienced and unsophisticated individuals."
In recent weeks, U.S. authorities have sought information from investors and potential investors in FTX, two sources with knowledge of the requests told Reuters. Prosecutors and regulators have not charged Bankman-Fried with any crime.before U.S. lawmakers. Since he took over as CEO, Ray said he has established that customer assets at FTX were commingled with those of Alameda Research, Bankman-Fried's crypto trading firm that maintained close ties with his exchange. Client funds were used to engage in margin trading, which exposed customers to massive losses, Ray said.
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