New FTX chief slams ‘complete failure of corporate controls’ at crypto exchange

The new boss of bankrupt crypto exchange FTX has slammed the management of founder Sam Bankman-Fried, saying the company’s financial statements could not be trusted and that a business once valued at $32bn lacked any significant internal controls.

John Ray III, a veteran insolvency professional who oversaw the liquidation of Enron, said in a court filing on Thursday that FTX was the worst case of corporate failure that he had seen in his more than 40-year career.

“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,” he said.

“From compromised systems integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

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