The CEO of FTX, John Ray III, overseeing the company’s Chapter 11 bankruptcy restructuring, has criticized the company's use of Amazon Web Services (AWS) to store private crypto keys. In a court filing last Sunday, Ray criticized the company for the way it used hot wallets and kept private keys in AWS, saying it was a particularly poor way to manage risk.

Keeping private keys in AWS makes them vulnerable to being compromised and poses a risk to the company's assets. Ray also highlighted that while FTX claimed to use a combination of hot and cold wallets, it actually used only hot wallets.

Ray's comments come in the wake of a scandal that has rocked FTX Group, which saw the company collapse amid revelations that its trading desk, Alameda Research, held billions of FTX Token (FTT) on its balance sheet and allegations that the company had been commingling user funds with its own.