• FTX’s CEO testified earlier than Home Monetary Providers Committee on Tuesday.

• John J Rau III faulted FTX’s operations, ensuing within the trade’s collapse.

• SBF has been charged with eight felony counts by the U.S. Lawyer’s Workplace for the Southern District of New York.

FTX was utilizing QuickBooks to trace its portfolio

FTX CEO John J Ray III testified earlier than the Home Monetary Providers Committee on Tuesday. Throughout the interview, the FTX CEO mentioned the cryptocurrency trade was utilizing QuickBooks to trace its multibillion-dollar portfolio.

He instructed the panel that FTX had no record-keeping in any way. He added that;

“That is actually simply old school embezzlement. That is simply taking cash from clients and utilizing it on your personal objective. Not refined in any respect,” Ray mentioned in blistering testimony that lasted greater than 4 hours. “Subtle, maybe in the best way they’re hiding one thing, frankly, proper in entrance of their eyes. That is simply plain outdated embezzlement. Old-fashioned, old skool.”

John J Ray III took over the corporate after FTX filed for Chapter 11 chapter final month. In an interview final month, the CEO revealed that the crypto trade’s collapse signifies a whole lack of company management.

SBF denied bail in The Bahamas

The previous FTX CEO Sam Bankman-Fried was arrested by authorities in The Bahamas earlier this week. SBF was just lately denied bail by a Bahamian decide as he’s deemed a flight danger.

The U.S. Lawyer’s Workplace for the Southern District of New York has already charged SBF with eight felony counts. The fees are; conspiracy to commit wire fraud and securities fraud, particular person prices of securities fraud and wire fraud, cash laundering and conspiracy to keep away from marketing campaign finance rules.

America Securities and Change Fee (SEC) additionally charged Sam Bankman-Fried on Tuesday morning with allegedly orchestrating a scheme to defraud fairness traders in FTX Buying and selling.

Earlier this month, SBF claimed that FTX US, the US arm of the crypto trade, was totally solvent and withdrawals might resume quickly. John J Ray III instructed the committee that SBF lied when he tweeted that the corporate had sufficient liquidity to cowl all shopper holdings.