As the House Financial Services Committee tried to get to the bottom of what went wrong in the lead-up to the collapse of FTX, some lawmakers pressed CEO John Ray III about what legislation governing cryptocurrency exchanges should include.
Record-keeping requirements, corporate controls and keeping customer funds separate are essential safeguards for financial entities, Ray said at the hearing Tuesday. His testimony came hours after former CEO Sam Bankman-Fried was arrested in the Bahamas and charged in the U.S. with eight counts of criminal conspiracy and fraud. The Securities and Exchange Commission and Commodity Futures Trading Commission also brought charges.
Bankman-Fried had been scheduled to testify to the committee Tuesday until his arrest.
