VIDEO: New FTX CEO Who Oversaw Enron Bankruptcy Says He’s Never in His Career Seen “Such a Complete Failure of Corporate Controls”
In coordination with U.S. regulators, John Ray III explained that the FTX chapter 11 bankruptcy would also investigate the connection between the crypto exchange’s collapse and the actions of the disgraced ex-CEO Sam Bankman-Fried (SBF).
Ray pointed to recent reports regarding the potential FTX hack and theft of millions of dollars in cryptocurrencies and indicated that a “substantial portion” of FTX’s assets may be “missing or stolen.” Ray lambasted SBF and the FTX management describing their controls on systems and regulatory compliance as lackadaisical.
Ray elaborated further, saying:
Also Read: FTX Crypto Exchange Files for Bankruptcy as Cryptocurrency Crisis Intensifies (VIDEO)
Speaking on the accuracy of the financial statements for FTX and sister company Alameda Research, Ray wrote in the bankruptcy filing that he did “not have confidence” in the accuracy of the balance sheets for either company, as they are as he described “unaudited and produced while the Debtors [FTX] were controlled by Mr. Bankman-Fried.”
Emergency court documents filed today by FTX say that new evidence suggests that SBF was directed by Bahamian regulators to gain “unauthorized access” to the FTX system in order to obtain the company’s digital assets after it had already filed for chapter 11 bankruptcy protection.
This is a developing story. Stay tuned for updates.
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