John Ray III, the newly appointed CEO of FTX who previously oversaw the restructuring of the infamous energy company Enron, says that he has never before seen “such a complete failure” of corporate controls as he has with FTX.
CNBC reports that FTX Chief Executive Officer John Ray III was blunt in a declaration to the U.S. Bankruptcy Court for the District of Delaware, stating that “in his 40 years of legal and restructuring experience,” he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”
After the Enron implosion, Ray served as the company’s CEO. He says that he now plans to work with regulators to investigate FTX founder and democrat super donor Sam Bankman-Fried. Ray’s filing says that FTX and Alameda Research’s hastily created balance sheets were “unaudited and produced while the Debtors [FTX] were controlled by Mr. Bankman-Fried.”
According to Ray, Bankman-Fried’s systems and regulatory compliance controls were so lackadaisical that they amounted to gross negligence. “The concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals” was unprecedented, Ray said. – READ MORE