FTX’s new CEO blasted Sam Bankman-Fried and his top business associates during scorched-earth testimony before a key House panel on Tuesday — just hours after the disgraced ex-billionaire’s arrest.
John Ray III — a restructuring expert who steered Enron through its bankruptcy — told lawmakers that Bankman-Fried ran the doomed cryptocurrency platform into the ground with a complete lack of recordkeeping and with shady business practices — including funneling billions in client funds to the cryptocurrency hedge fund Alameda Research.
“FTX Group’s collapse appears to stem from the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals who failed to implement virtually any of the systems or controls that are necessary for a company that is entrusted with other people’s money or assets,” Ray said in his opening statement.
At one point, the new FTX boss shocked lawmakers by revealing that Bankman-Fried and his associates used QuickBooks, Intuit’s bookkeeping software for small businesses, to manage its sprawling cryptocurrency empire.
“There’s no recordkeeping whatsoever, there’s an absence of recordkeeping,” Ray said. “They used QuickBooks, a multibillion-dollar company using QuickBooks. Nothing against QuickBooks, it’s a very nice tool, just not for a multibillion-dollar company.”
Shares of Intuit were trading 6% higher on Tuesday after the unexpected shoutout.
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