FTX Crypto Exchange’s Shocking Mismanagement Uncovered
According to a newly published court document, the CEO of FTX, John J. Ray III, has revealed issues with the exchange's management.
The report states that FTX had poor control processes and record-keeping, leading to mismanagement of funds and business malpractices that ultimately caused the exchange to collapse in November 2022.
It has also been disclosed that FTX stored private keys to its customers’ crypto wallets on Amazon Web Services (AWS), a third-party platform. This revelation has raised concerns about the security of users’ funds, as compromising private keys can result in losing funds.
As a result, the FTX executives have been summoned to court for their actions and responses regarding the safety and storage of crypto assets.
This news has surfaced during a time of increased regulatory scrutiny in the cryptocurrency industry. It remains to be seen how this revelation will impact FTX’s reputation and whether the exchange will take measures to defend its actions.