Former FTX US President Brett Harrison reportedly resigned last September due to a "protracted disagreement" with CEO Sam Bankman-Fried and his inner circle, according to a new report filed by FTX CEO John J. Ray III to the US bankruptcy court in Delaware.
The report alleges that FTX and related entities were sloppily run and lacked appropriate delegation of authority, formal management structure, and key hires. The report also reveals that FTX failed to use two-factor authentication for its critical corporate services and held the vast majority of its crypto assets in hot wallets at all times, despite Bankman-Fried's public reassurances.
A still-unknown hacker took control of $432 million worth of crypto from various FTX-controlled wallets the night the exchange filed for bankruptcy.
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