Current FTX CEO: FTX stored private keys unencrypted during SBF tenure, making "hundreds of millions of dollars" vulnerable to theft or attack

According to The Block, current FTX CEO John Ray said in prepared testimony to the U.S. House of Representatives Financial Services Committee that FTX did not encrypt the private keys of encrypted wallets during his previous tenure at SBF, leaving "hundreds of millions of dollars" vulnerable to theft. or other malicious activity. New CEO John Ray III said he had taken steps to protect more than $1 billion worth of digital assets. Nick Neuman, CEO of non-custodial wallet provider Casa, said that FTX storing unencrypted private keys will allow any employee with internal system access, or any external party who can gain system access, to easily move or Steal client funds. In November, exchange wallets belonging to FTX appear to have been hacked, with losses estimated to be worth $300 to $400 million, according to estimates from security firms Halborn and PeckShield.