is saying a lot because john ray is also the guy who led enron through bankruptcy. now he stopped short of outright calling ftx a fraud. but he did lay out a series of allegations that support some of these charges that cara was just talking about from federal prosecutors and john ray said that the major breakdown is that customer funds were mitched with the asset from ftx hedge fund. the s.e.c. said that is at the heart of the house of cards. hedge fund made risk by bets and went on a $5 billion spending spree on money losing investments and they made loans to insiders in excess of $1 billion. hopefully, kate, this hearing will bring some clarity to some other major questions that are still unanswered at this point. one, what hope do customers who lost money in this bankruptcy have at recovering it and also how do you regulate crypto. because this bankruptcy has made it patently obvious that
incl including wire fraud and hours after he was arrested in the bahamas at the request of u.s. prosecutors. now bankman-fried was supposed to be testifying before congress right now about the collapse of ftx. that was that company once valued at $32 billion. now bankrupt. a lot to get to. let let s begin with cara scan ll. what do we do with that. our massive new charges unsealed by the u.s. attorney s office in manhattan. there are eight criminal counts that he s facing, that includes wire fraud, conspiracy and multiple counts of conspiracy and what they lay out in the 14-page indictment are a number of schemes and they involve the trading platform known as ftx and as well as a hedge fund run by bankman fried. trading funds were used and misappropriated and used by the h hedge fund, and he had borrowed
these things haeal. this is a long-term recovery. i m wrestling with, is it all worth it, for my family, what we went through, was it worth it? now my parents would say yes and my mother would say i m proud of the life that she s lived but for the family, the families are the ones that pay the highest price for this kind of life. indeed. alexandra pelosi is releasing a document about her mother s life and political service and hbo max owned by our parent company warner brothers discovery. thanks so much for join ug today. i m erica hill. and i m jim sciutto. at this hour with kate bolduan starts right now. hello, everyone. at this hour, the founder of the crypto exchange ftx arrested and
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let s stay in the us because disgraced cryptocurrency tycoon sam bankman fried has been making his first public appearance since the $32 billion collapse of his crypto exchange ftx. giving an interview via video link at a new york times event, sbf as he s known said he didn t ever try to commit fraud but rather made a lot of mistakes . our silicon valley correspondentjames clayton was watching. well, i think the first thing to say here is that sam bankman fried was told by his lawyers not to do this interview, and he went ahead and did it anyway. and i think that really tells you where his headspace is right now, because he kind of gave the air that he didn t really care about himself, that he really only cared about what was going to happen to the people who have lost money in ftx, and hejust wanted to do right quote unquote. now, did he actually answer the questions honestly, though? because.when i. i mean, i listened to the whole thing, and a lot of the answers, he wa