FTX went on a $5 billion ‘spending binge’ in the year before it collapsed, buying up businesses and investments that are likely now worth ‘only a fraction’ of that amount, its new CEO has told lawmakers.
The failed company squandered the eye-watering amount ‘in late 2021 through 2022’ before it filed for bankruptcy, leaving about one million customers owed billions of dollars.
John J Ray III, the new CEO of FTX appointed to guide it through bankruptcy, made the disclosure in testimony to the House Financial Services Committee.
The committee will hear from Ray on Tuesday, as well as from disgraced FTX founder and former CEO Sam Bankman-Fried, who faces criminal charges over the company’s demise.
John J. Ray III has been appointed to oversee the FTX bankruptcy. In testimony ahead of an appearance before Congress, he said the company spent billions on investments that may now be worth ‘a fraction’ of what was paid. He details a calamitous lack of corporate controls at FTX
In testimony to Congress, John J Ray III repeats his damning assessments about the total lack of…
