The new head of cryptocurrency exchange FTX, which filed for US bankruptcy last week, has slammed the disastrous management of the company by his predecessor and platform co-founder Sam Bankman-Fried. “Never in my career have I seen such a complete failure of a company’s control mechanisms and such a blatant lack of reliable financial information.John Ray III said in a court document filed Thursday in Delaware bankruptcy court.
“From the compromised integrity of systems and flawed regulatory oversight overseas to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially corrupt individuals, this situation is unprecedented.added John Ray III, who oversaw the bankruptcy of former US energy giant Enron in the early 2000s.
Considered one of the world’s leading cryptocurrency exchanges, FTX abruptly declared bankruptcy last Friday with the resignation of Sam Bankman-Fried as the company faced a severe solvency crisis. John Ray III expressed.significant concernsregarding the reliability of FTX’s financial statements and believes that there are “at least $372 million in unauthorized transfers“. Company leadershave found and secured only a portion of the FTX Group digital assets they hope to recover“, he elaborated. The new head of FTX also condemned the statements.inconsistent and misleadingAfter the resignation of Sam Bankman-Fried, detailing that the latter no longer speaks on behalf of the company.
In a private Twitter conversation with a Vox reporter published Thursday, Sam Bankman-Fried said he regrets his decision to put FTX under Chapter 11 bankruptcy protection. “Everything would be about 70% fixed if I didn’t do this“, he assessed.
Sam Bankman-Fried also attacked American regulators, judging that the latter “don’t protect consumers at all” and that they “cannot distinguish between good and bad“. “What I said was partly thoughtless or rude. I was exclaiming and didn’t intend for this to be published“, he wrote on Twitter.
Source: Le Figaro
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