New FTX CEO details 'complete failure of corporate controls' at crypto platform

The new CEO of FTX issued a searing indictment of the company’s operations Thursday in a court filing as part of the company’s ongoing bankruptcy process.

The new CEO of FTX issued a searing indictment of the company’s operations Thursday in a court filing as part of the company’s ongoing bankruptcy process.

New CEO and restructuring officer John Ray wrote that the company had a striking lack of financial records, internal communications or even a clear idea of who worked there.

“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, who noted that he has more than 40 years of legal and restructuring experience including overseeing Enron when it declared bankruptcy, wrote in the filing.

Bahamas-based FTX had reigned until earlier this month as one of the largest cryptocurrency exchanges in the world and was valued earlier this year at $32 billion until its finances came crashing down in recent weeks. Its lawyers have indicated it may have more than 1 million creditors, and Reuters has reported that two unnamed sources said more than $1 billion in client funds may be missing. NBC News has not verified those reports.

Ray took over after former CEO Sam Bankman-Fried stepped down on Friday.

https://www.nbcnews.com/tech/crypto/new-ftx-ceo-details-complete-failure-corporate-controls-crypto-platfor-rcna57687


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