John Ray III tells the House that FTX has a “paperless bankruptcy” due to an “unprecedented” lack of documentation, FTX and Alameda were not distinct, and more
the same hearing ex-CEO Sam Bankman-Fried was expected to speak at before his arrest Bennett Tomlin / Protos : New FTX chief describes the firm's collapse in bankruptcy testimony Tweets: @zerohedge : The House is so very, very angry at @SBF_FTX today. So different from the last Finance Cmte hearing where the Chair was blowing the 30-year-old prominent donor kisses https://twitter.com/... Molly White / @molly0xfff : Rep. Emmer (R-MN) is up. He's a huge crypto advocate, and is one of the “blockchain eight” who signed the letter urging the SEC to back off. He's recently been trying to pin the FTX collapse on SEC chair Gary Gensler. #FTXhearing Brendan Pedersen / @brendanpedersen : Brad Sherman has fired our first shot of the hearing, pleading with his colleagues not to pass the DCCPA. Proposed by Senate Ag Chair Debbie Stabenow and RM John Boozman, the bill was heavily supported by FTX and SBF. Read more the bill's outlook here: https://punchbowl.news/... https://twitter.com/... Edward Ongweso Jr / @bigblackjacobin : really funny to tune into the FTX congressional hearing and see the guy who cleaned up Enron look more tired than he's ever been in his life Brendan Pedersen / @brendanpedersen : SHERMAN: SBF's one purpose was “to keep the SEC out of crypto.” “Don't trash Sam Bankman-Friend and then pass his bill,” Sherman says, referring to the Digital Commodities Consumer Protection Act, a bill from the Senate Ag Committee to empower the CFTC. Molly White / @molly0xfff : Ray just said that FTX used QuickBooks for recordkeeping. “A multibillion dollar using QuickBooks!” #FTXhearing @therecount : FTX CEO John Ray testifies before Congress on why the company has collapsed: “The FTX group's collapse appears to stem from absolute concentration of control in the hands of a small group of grossly inexperienced and unsophisticated individuals.” https://twitter.com/... @business : “There was no record keeping whatsoever.” FTX CEO John J. Ray III explains why he compared the collapse of FTX to Enron https://www.bloomberg.com/... https://twitter.com/... Dave Troy / @davetroy : OMG, listening to the FTX hearing and John Ray says they were using Quickbooks for accounting, to the extent they even had any. Congresswoman replies, “Quickbooks?” JFC. What's remarkable is that this level of dysfunction and grift in crypto is likely not unique to FTX. @therecount : “I've just never seen an utter lack of record-keeping. Absolutely no internal controls whatsoever.” — FTX CEO John Ray criticizes the company's previous management under Sam Bankman-Fried https://twitter.com/... Anthony DeRosa / @anthony : Ray says the FTX used QuickBooks (!!!) for record keeping “Nothing against QuickBooks ... just not for a multi-billion dollar company” https://www.c-span.org/... https://twitter.com/... Dan Primack / @danprimack : Ray emphasizes how unusual and problematic it is for a “company of this size” to not have an independent board. FTX was valued at $32 billion. Twitter was valued by Musk at $44 billion, and doesn't have an independent board. Like FTX, it has outside equity investors. @coindesk : “There were virtually no internal controls and no separateness whatsoever” between @FTX_Official and Alameda research, FTX CEO John Jay Ray III says, testifying before the U.S. House Committee on Financial Services. Watch the proceedings live: https://www.youtube.com/... https://twitter.com/... @hsakatrades : John Ray on FTX being worse than Enron: “There's no record-keeping whatsoever. Employees would communicate invoicing and expenses on Slack. They used QuickBooks. There's no independent board. There was one person controlling everything” Paul McLeod / @pdmcleod : New FTX head John Ray III is asked to compare FTX to Enron. “[Enron crimes] were highly orchestrated financial machinations by highly sophisticated people to keep transactions off balance sheets. This (FTX)... isn't sophisticated whatsoever, this is just plain old embezzlement.” @hsakatrades : Williams: “Fried has been extremely critical of your own appointment and still wants to be retained as an outside consultant after stealing customers money. What role should he play in FTX moving forward?” Jon Ray: “The role he's currently playing. Zero” Eleanor Terrett / @eleanorterrett : It's been reported that @SBF_FTX was reluctant to make John Ray FTX CEO and was “strong-armed” into doing so. Ray comes across as the exact opposite of Sam and his friends - experienced, level-headed with an actual understanding of how money works. No wonder he felt threatened. @business : “They use QuickBooks... A multimillion dollar company using QuickBooks,” FTX CEO John Ray said when explaining why FTX is worse than Enron https://www.bloomberg.com/... https://twitter.com/... @coffeebreak_yt : FTX Bankruptcy CEO (JOHN RAY III) just testified there was “no distinction” between FTX and Alameda Research in terms of governance. @hsakatrades : Sherman: “Will you be looking at Ryan Salame, Caroline Ellison, the other folks in the fancy apartment?” John Ray: “We are doing a thorough investigation. We will cooperate to turn over any investigation that is relevant” @zerohedge : *BANKMAN-FRIED'S PARENTS RECEIVED PAYMENTS, FTX CEO RAY SAYS Mind the inbound wire gap @hsakatrades : Waters: Did FTX have sufficient risk management systems and controls that monitored the inter connections it had with Alameda? John Ray: There were virtually no internal controls and no separateness whatsoever. @autismcapital : We are watching the FTX congressional hearing live. We will be livetweeting. Maxine Waters is currently introducing John Ray. https://www.youtube.com/... https://twitter.com/...