FTX collapse was ‘plain old embezzlement’, new CEO says in testimony

The current FTX CEO has described the cryptocurrency exchange’s collapse as “plain old embezzlement” during a testimony before a House panel on Tuesday, 13 December.

John Ray’s comments came hours after the company’s founder, Sam Bankman-Fried, was arrested in the Bahamas.

The entrepreneur has been charged with eight counts of fraud, money laundering and other financial crimes.

“This isn’t sophisticated whatsoever, this is just plain old embezzlement,” Ray said of the loss of customer funds after FTX filed for bankruptcy.

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