FTX was “old-fashioned embezzlement,” new CEO testifies before US Congress | FULL

John J. Ray III, the new chief executive officer of FTX Group, testified before the U.S. House of Representatives Financial Services Committee on Tuesday, following the collapse of the crypto exchange platform last month.

Earlier this week, former CEO Sam Bankman-Fried was charged with orchestrating a scheme to defraud investors by the U.S. Securities and Exchange Commission (SEC). Bankman-Fried was arrested Monday in the Bahamas at the request of the U.S. government, U.S. and Bahamian authorities said.

Ray, who previously served as the chief executive of Enron following its bankruptcy, said that Enron involved “highly orchestrated financial machinations by highly sophisticated people,” whereas FTX was “old-fashioned embezzlement." Ray likened FTX as "just taking money from customers and using it for your own purpose.”

Rep. Emanuel Cleaver brought up leaked testimony that was supposed to be read by the former CEO. “I don’t know him personally and probably don’t want to, but this testimony is so disrespectful…and I can’t even say it publicly,” Cleaver said. FTX filed for bankruptcy protection on Nov. 1.

For more info, please go to https://globalnews.ca/news/9344563/ftx-ceo-sam-bankman-fried-charged/

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