FTX US 'Was Not Independent' of Parent Company, New FTX CEO Will Say in House Testimony

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FTX US “was not independent” of its parent company, new FTX CEO John Ray III plans to say in his testimony before the House Financial Services Committee on Tuesday. nikhileshde reports

John Ray III, who assumed leadership of the company last month hours before it filed for bankruptcy, will tell the House Financial Services Committee that his new team has so far secured over $1 billion in digital assets, though that's only a small portion of the billions it owes customers and other creditors.

"A substantial portion" of FTX's assets remain"missing, misappropriated or not readily available," the prepared testimony said, which also implied FTX's former leadership was not being helpful to the new leadership. For the first time, Ray provided some explanation as to why FTX US filed for bankruptcy alongside the rest of the company. Former FTX CEO Sam Bankman-Fried, who is also set to testify Tuesday,"Questions have been raised as to why all of the FTX Group companies were included in the Chapter 11 filing, particularly FTX US. The answer is because FTX US was not operated independently of FTX.com," Ray said.

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