FTX's new CEO: FTX US is not independent from FTX, and management chaos has made evidence collection difficult

ChainCatcher news, FTX's new CEO John Ray III is scheduled to testify on Tuesday (local time December 13) before the U.S. House Financial Services Committee. In the previously released testimony, Ray again condemned the inexperience of FTX's former leadership, stating, "I have never seen a company fail so badly in record keeping and asset management." A "large portion" of FTX's assets are still "lost, misappropriated, or difficult to access," and without any system to track assets, the current team is "struggling to gather evidence."
Ray provided some explanations for why FTX US filed for bankruptcy along with the company's other divisions: "Some have questioned why all FTX group companies are included in the Chapter 11 filing, particularly FTX US. This is because FTX US did not operate independently of FTX.com." However, SBF claimed in an interview last week that FTX US was solvent and could continue to process user withdrawals. He also confirmed that FTX spent about $5 billion on various investments and acquisitions, with another $1 billion flowing to insiders as loans and other payments, particularly as these acquisitions and investments may no longer hold their original value. (CoinDesk)