FTX's new CEO testified that Sam Bankman-Fried did not tell the truth when he told the public that the embattled exchange could cover its clients’ holdings.
The revelation came on Tuesday during a hearing before the House Financial Services Committee that featured CEO John Ray III. Ray was asked by Rep. Ritchie Torres about the veracity of Bankman-Fried’s initial claims in an effort to establish a timeline of the exchange's collapse and determine whether Bankman-Fried lied to investors and customers.Torres brought up how, during a recent interview, Bankman-Fried conceded that he knew there was a problem on Nov.
In seeking further clarification, Torres asked Ray whether the Nov. 6 tweet was actually the reality of the situation.“So that statement was false?” Torres continued, with Ray responding that Bankman-Fried’s message was indeed false. “It’s an absence of record-keeping. Employees would communicate invoicing and expenses on Slack, which is essentially a way of communicating [in] chat rooms,” Ray told lawmakers. “They used QuickBooks — a multibillion-dollar company using QuickBooks.”
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