The former CEO of FTX, Sam Bankman-Fried, has been charged with fraud by U.S. authorities, a month after the crypto exchange filed for bankruptcy protection.
This follows the revelation that FTX previously stored private keys to its crypto wallets without encryption, leaving them vulnerable to theft.
The new CEO, John Ray III, testified to the U.S. House Financial Services Committee that he took steps to secure more than $1 billion worth of digital assets after discovering that the private keys were stored unencrypted.
In November, wallets belonging to FTX were reportedly hacked, with estimates ranging from $300-$400 million. Bankman-Fried suggested that a “disgruntled employee” may have stolen the private keys to the crypto wallets.