New FTX boss ‘troubled’ at how firm was run

November 18, 2022


The new boss at the troubled cryptocurrency exchange FTX has expressed concerns at the way the company was run, according to reports.

FTX, which collapsed last week, has appointed chief executive John Ray who said in court filings in the US that he had never “seen such a complete failure of corporate controls”.

He also noted a “complete absence of trustworthy financial information”.

Meanwhile, the former boss Mr Bankman-Fried said he regretted filing for bankruptcy and the decision had largely taken financial matters out of his control.

Mr Ray said FTX’s predicament was “unprecedented” in his 40-year career, which includes the crash of energy giant Enron.

In documents filed for bankruptcy proceedings, Mr Ray also criticised alleged “erratic and misleading” public statements by his predecessor.


It had been possible to locate “only a fraction of the digital assets” held by the firm this far, he said.

According to the BBC, Mr Ray’s declaration to the court also says: “In the Bahamas, I understand that corporate funds of the FTX Group were used to purchase homes and other personal items for employees and advisors.”

However, Mr Ray noted there remained a core of dedicated employees who have stayed focused on the job, despite the bankruptcy.

According to reports in the US, FTX is estimated to owe money to more than a million people and organisations across the globe. It is uncertain they will be able to recover their money.

Recently on Twitter, Mr Bankman-Fried declared: “My goal – my one goal – is to do right by customers.”

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