FTX caretaker CEO John J. Ray III set to appear before Congress hours after SBF arrest


Share:
  • John J. Ray III, the new FTX CEO, to make first public comments at a congressional hearing.
  • Sam Bankman Fried arrested by Bahamian police after US authorities charged him with money laundering, wire and securities fraud.
  • The US SEC is investigating other accounts of Securities Law violations conducted by other persons linked to FTX.
  • Bitcoin price steadies above $17,000 while the 200-day EMA holds immediate support.

The current CEO of the defunct cryptocurrency exchange, John J. Ray III, will publicly appear at a congressional meeting on Tuesday. Ray's scheduled comments come hours after the former CEO Sam Bankman Fried (SBF) was arrested by the Bahamian police.

Government authorities in the United States have charged SBF with money laundering, wire and securities fraud. He will remain in the custody of the Bahamian police awaiting his extradition to the US.

John J. Ray III to meet the House Committee on Financial Services

Ray, tasked with leading FTX through the bankruptcy proceedings, has been scheduled to appear before the House Committee on Financial Services for a hearing starting at 10 a.m. Eastern Standard Time, on Tuesday.

SBF would have testified before the same committee if it were not for his arrest. Ray has not publicly spoken since his stint at the fallen crypto giant began last month. In an earlier written statement, Ray outlined that the FTX's failure stemmed from "the absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals."

Ray brings to FTX an exemplary track record, having helped other companies navigate the turbulent currents associated with bankruptcy proceedings. He has also pointed out that FTX was prone to "unacceptable management practices" where senior officials dipped their hands into customer funds without a proper control system. Ray and his team are currently working on locating company properties that "may be missing, misappropriated, or not readily traceable."

SBF in the custody of Bahamian police

Sam Bankman Fried will spend his first night behind bars on Tuesday after the Bahamian police arrested him. The 30-year-old crypto entrepreneur is awaiting extradition orders from the US authorities to answer the charges of money laundering, wire and securities fraud.

Meanwhile, the most recent filing by FTX claims that SBF, lawyers representing the company's Bahamian-based subsidiary and local government authorities are involved in an unlawful transfer of assets to pay selected creditors. FTX attorneys also allege that new FTT tokens were minted around the time when $600 million was drained from the platform in November.

In other emerging news, the Securities and Exchange Commission (SEC) is looking into other Securities Law violations that could have been perpetrated by other entities and persons linked to the misconduct at FTX.

Bitcoin price spikes above $17,000

Bitcoin price extended its leg above $17,000 as investors reacted to SBF's arrest. The largest cryptocurrency tagged $17,503 for the first since November 11, when FTX filed for bankruptcy.

BTC/USD four-hour chart

BTC/USD four-hour chart

Despite BTC's speedy move above $17,000, further growth has been stifled as it has been forced to retreat to $17,443. On the bright side, the 200-day Exponential Moving Average (EMA) (in purple) is in line, providing the bellwether cryptocurrency with immediate support at $17,369.

A break and hold above $17,500 is necessary to keep investor confidence high while clearing the path to $20,000. On the flip side, failure to hold above the 200-day SMA could see Bitcoin price drop to retest support at $16,900 and $15,700, respectively.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Dogecoin price bullish outlook intensifies as DOGE turns 10

Dogecoin price bullish outlook intensifies as DOGE turns 10

Dogecoin price has sustained the bullish outlook since October 18, when the broader market turned green, leading meme coins in an uptrend, which is no mean feat. The 65% climb has ushered the dog-themed cryptocurrency to its tenth birthday since its official launch on December 6, 2013.

More Dogecoin News

Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally

Bitcoin-based meme coin ORDI price action wobbles after 1,100% rally

The Bitcoin-based BRC-20 meme coin, which had people confused as being an actual valuable token, is now slowly creeping up to that status. ORDI price rise over the past couple of days has been astonishing, and with BTC driving the price and crossing $44,000, ORDI is also gaining rapidly. But not for long.

More Ordi News

Arbitrum price veers as hard fork proposal receives 99.84% votes in favor

Arbitrum price veers as hard fork proposal receives 99.84% votes in favor

Arbitrum's price surpassed expectations as the altcoin managed to restrict the fluctuation over the past 24 hours. This is because ARB was forecasted to rally following the result of the proposal to essentially hard-fork the chain.

More Arbitrum News

Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization

Bitcoin price hits $44,000 as Coinbase CEO speculates BTC could be key to extending Western civilization

Bitcoin (BTC) price has revisited levels last seen in April 2022, prior to the collapse of the Terra UST ecosystem. Its foray above the $42,000 psychological level has market watchers enthused.

More Bitcoin News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP