Newly appointed FTX CEO John Ray III excoriated Sam Bankman-Fried, declaring he had never seen such a failure of corporate controls or trustworthy information.
Sam Bankman-Fried, co-founder and CEO of FTX, in Hong Kong, China, on Tuesday, May 11, 2021.minced no words in a filing with the U.S. Bankruptcy Court for the District of Delaware, declaring that "in his 40 years of legal and restructuring experience," he had never seen "such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.
Ray excoriated Bankman-Fried and his management team for what were described as lackadaisical controls on systems and regulatory compliance. Ray said a "substantial portion" of assets held with FTX may be "missing or stolen," following widespread reports on social media of the theft of hundreds of millions in cryptocurrencies.
Alarmingly, Ray wrote that part of his remit would be to implement controls and basic corporate standards such as "accounting, audit, cash management, cybersecurity, human resources, risk management, data protection and other systems that did not exist, or did not exist to an appropriate degree, prior to my appointment."
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
FTX Advisers Find Only $740 Million in Crypto, While Liquidity Gap Stands at $8 BillionFTX funds were used to buy homes and personal items for FTX employees. crypto
Read more »
Exec who cleaned up Enron calls FTX mess 'unprecedented'The man who had to clean up the mess at Enron says the situation at FTX is even worse, describing what he calls a “complete failure” of corporate control. The filing by John Ray III, the new CEO of the bankrupt cryptocurrency firm, lays out a damning description of FTX’s operations under its founder Sam Bankman-Fried, from a lack of security controls to business funds being used to buy employees homes and luxuries. “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said.
Read more »
The FTX contagion: Which companies were affected by the FTX collapse?Some of the firms affected include Genesis, Sequoia Capital, Galaxy Digital, and Galois Capital.
Read more »
TSM FTX drops FTXFTX had signed a huge sponsorship deal with TSM.
Read more »
FTX downfall was a turning point for citizen journalism: Coinbase CEOThe CEO of cryptocurrency exchange Coinbase, Brian Armstrong, accused the New York Times of writing “puff pieces” on former FTX CEO Sam Bankman-Fried and suggests the FTX story has been a turning point for citizen journalism as it has mostly played out on Twitter.
Read more »