Senators Elizabeth Warren (D-MA) and Dick Durbin (D-IL) wrote to former FTX CEO Sam Bankman-Fried and John Jay Ray III, the newly appointed CEO of FTX, on Thursday, requesting information on the reported misappropriation of billions of dollars in customer funds, as well as other emerging allegations of improper business practises. “Billions of dollars in investor funds appear to have vanished into thin air,” the lawmakers wrote. “These massive losses raise concerns about former FTX CEO Sam Bankman-Fried and other company executives’ behaviour.” In the letter, Lawmakers ask an explanation of how FTX’s liquidity crisis occurred, data on all customer funds transferred out of FTX, copies of internal policies and procedures pertaining to FTX’s relationship with Alameda, and how $1.7 billion in customer assets went missing.
