“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.”
This, according to the new CEO of failed cryptocurrency exchange FTX, describes the company’s current standing after a liquidity crisis came to light early this month. Chicago-based attorney John J. Ray, III made the statement in a bankruptcy court filing issued November 17.
Ray is best known for overseeing the Enron bankruptcy proceedings in 2001, and has 40 years’ experience in cleaning up corporate collapses. Yet FTX is new territory for him.
“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,” he added…