The House financial services committee publishes a prepared testimony from FTX CEO John Ray.
Some highlights:
- FTX Collapse appears to stem from concentration of control in small group of inexperienced and unsophisticated individuals
- FTX failed to implement virtually any systems necessary for company entrusted with people’s money or assets
- Used computer infrastructure that gave senior management access to systems that stored customer assets
- Had unacceptable management practices including co-mingling of assets
- Has hired a new financial officer head of human resources and head of information technology
- Working around the clock to locate and secure property of estate, a portion of which may be missing
- Process being overseen by newly appointed board of directed chaired by former US attorney Joseph Farnan
That is what an unregulated industry has the potential to look like
