US prosecutors allege he played a key role in the collapse of FTX — a cryptocurrency exchange and crypto hedge fund he founded — and hid its problems from investors.
John Ray III said the trading firm was poorly regulated in the Bahamas, where the company is headquartered. He also criticized the poor management style of his predecessor, Sam Bankman-Fried.
The troubled platform's new CEO said it was hit by "unauthorized transactions," fueling rumors of a cyberattack or insider theft. FTX filed for bankruptcy protection after a crypto equivalent of a bank run.
FTX is suspected of misappropriating customer funds. The platform's founder and former CEO, Sam Bankman-Fried, lives in the island country.