The reasons for the bankruptcy of one of the largest crypto exchanges – FTX – were inefficient management and inexperienced leaders. This statement was made by the new CEO of the site, John Ray, during a hearing in the Committee on Financial Services of the House of Representatives of the US Congress,
writes TASS.
Photo: pixabay.com
Formerly the founder and former head of the exchange, Sam Bankman-Fried, was
arrested in the Bahamas. He was charged with defrauding investors.
In his speech, Ray noted that control was in the hands of a small group of “extremely inexperienced and ignorant people.”
He also drew attention to the fact that there were no differences between the activities of FTX and Bankman-Fried’s private cryptocurrency hedge fund Alameda Research, as well as financial accounting. It will take months for the assets to return, he said, as funds from the exchange’s clients were used for margin trading. Now the crypto exchange has a new leadership that saves the situation.
FTX problems began in the first half of November after the release of an investigation by CoinDesk, which indicated the insolvency of the exchange. Investors rushed to withdraw money en masse. Two weeks after FTX filed for bankruptcy, investors withdrew from crypto funds almost $20 billion.
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