FTX CEO blames 'grossly inexperienced' owners for collapse, says customer money funded risky Alameda trades
FTX CEO John Ray III told House lawmakers that the "grossly inexperienced and unsophisticated individuals" running the company had absolute control over customers' funds, which they lost.
The seasoned restructuring officer revealed that senior FTX management had access to customer assets they were able to redirect, held hundreds of millions of dollars of crypto access absent of security controls or encryption, and pointed to "[the] absence of audited or reliable financial statements."
Further, Ray revealed, the FTX group went on what he called "a spending binge" in late 2021 through this year shelling out roughly $5 billion on an array of business and investments that "may be worth only a fraction of what was paid for them." He also wrote that "loans and other payments were made to insiders in excess of $1 billion."
Love how they are trying to spin this as just a bunch of kids who had little experience and got in over their head. With the fact these crooked POS were the second largest donor to Democrats i have little faith the Biden DOJ will prosecute this case to the full extent of the law. If Democrats had any morals they would refund every penny in donations they recieved from this POS and put it into a fund for those that were stupid enough to get duped. Normally I'm a believer in personal responsibility but here our government failed to properly regulate a company that had zero financial or investment controls. Government failed once again, whether that failure was do to being paid off, gross negligence or a combination of both remains to be seen.
