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FTX CEO to detail “unacceptable management practices” in congressional testimony

(Reuters) – FTX CEO John Ray will tell lawmakers on Tuesday that the bankrupt cryptocurrency exchange had “unacceptable management practices” including the commingling of assets and lack of internal controls, according to prepared remarks published by the U.S. House Financial Services Committee.

The logo of FTX is seen at the FTX Arena in Miami

(Reuters) – FTX CEO John Ray will tell lawmakers on Tuesday that the bankrupt cryptocurrency exchange had “unacceptable management practices” including the commingling of assets and lack of internal controls, according to prepared remarks published by the U.S. House Financial Services Committee.

FTX filed for U.S. bankruptcy protection last month and its founder Sam Bankman-Fried resigned as chief executive. Both Ray and Bankman-Fried will testify before the committee on Tuesday at 10 a.m. ET (1500 GMT).

Ray in his prepared remarks said that the FTX collapse appeared to stem from the concentration of control “in the hands of a very small group of grossly inexperienced and unsophisticated individuals.”

(Reporting by Hannah Lang in Washington)

By Reuters

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