FTX's Downfall: Hubris, Incompetence, and Greed.
FTX CEO John Ray III criticized the company's use of Amazon Web Services (AWS) to store private keys for its hot wallets, which were compromised in November 2021, resulting in the loss of $432 million worth of funds. Ray stated that FTX kept virtually all crypto assets in hot wallets and did not use offline, air-gapped, encrypted, and geographically distributed laptops to secure crypto assets. He also mentioned that FTX lied about using cold storage and recommended that FTX.US make better use of cold wallet storage, but no such system was put in place prior to the bankruptcy.