FTX CEO John Ray III, who has guided dozens of companies, including Enron, through bankruptcy restructuring, called FTX's collapse one of the worst business failures he has seen -- a "paperless bankruptcy," fueled by an "unprecedented lack of documentation."
"Nothing against QuickBooks," Ray said. "It's a very nice tool, just not for a multibillion-dollar company."Notably absent from the hearing before the House Financial Services Committee was Bankman-Fried, who was arrested in the Bahamas just hours before he was scheduled to testify. The arrest was made at the request of the U.S. government, which on Tuesday announced criminal charges against Bankman-Fried including wire fraud and money laundering.
FTX filed for bankruptcy protection on Nov. 11, when the firm ran out of money after the cryptocurrency equivalent of a bank run. The collapse of crypto's second-largest exchange has garnered worldwide attention, and prompted worries in the crypto industry that the pain could become widespread. Ray estimated that about $8 billion of customer funds are missing.
Ray, who took over FTX on Nov. 11, told the committee that the problems at FTX were a cumulation of months or even years of bad decisions and poor financial controls.However, Ray didn't answer numerous questions about what regulations could have stopped the collapse of FTX.
New captain of the Titanic says lax oversight, bad decisions…
Oversize !!! Dereliction of Duty is more like it . Feeding trough for liberal donors.
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