Batik cryptocurrency The details of John Ray’s speech before the House of Representatives Financial Services Committee tomorrow have been revealed.
“1) Client assets in FTX were mixed with assets in the Alameda trading platform.
2) Alameda used client funds to trade margin, which exposed client funds to huge losses.
3) FTX Group went on a spending spree from late 2021 to 2022, spending nearly $5 billion during that time, acquiring countless businesses and investments, many of which were worth only a fraction of the money paid for.
4) Loans and other payments exceeding $1 billion were made to insiders.
5) FTX has stored certain private keys of crypto assets without effective security controls.
6) FTX used computer infrastructure that gave senior management access to systems that store customer assets.
7) No effective limit has been set on the ability of Alameda, a crypto hedge fund within the FTX Group, to borrow funds held on FTX.com to use for its own trading or investments.
8) Lack of staff in the finance and risk management functions, which should normally be present in any company close to the size of the FTX Group, and there is no independent management throughout the FTX Group.”
*Not investment advice.