In an ongoing Congressional hearing, FTX’s newly appointed chief executive John Ray III told the panel that Sam FTX founder Sam Bankman-Fried “should have known” his actions and conflict of interest between the corporate relationship between the FTX crypto exchange and its trading arm Alameda Research would result in the empire’s final collapse.

In his remarks, Ray asserted that assets belonging to FTX customers were combined with those of Bankman-Fried’s trading company, Alameda. He further stated that the FTX exchange also made it possible for Alameda to efficiently borrow money without restrictions.

In the prepared testimony, he said that Alameda additionally used client funds for trades, subjecting them to significant losses.