new boss castigates Sam Bankman-Fried’s methods

John Ray III notably denounced the “incoherent and misleading” statements of the former boss since his resignation.

The new boss of the cryptocurrency exchange FTX, which filed for US bankruptcy last week, denounced the disastrous management of the company by its predecessor and co-founder of the platform, Sam Bankman-Fried. “Never in my career have I seen such a complete failure of a company’s control mechanisms and such a flagrant absence of reliable financial information as has occurredJohn Ray III said in a court document filed Thursday in a Delaware bankruptcy court.

From the compromised integrity of systems and faulty regulatory oversight overseas to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially corrupt individuals, this situation is unprecedented.added John Ray III, who oversaw the bankruptcy of former US energy giant Enron in the early 2000s.

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Considered one of the world’s leading cryptocurrency exchanges, FTX abruptly announced its bankruptcy filing last Friday along with the resignation of Sam Bankman-Fried as the company faced a severe solvency crisis. John Ray III expressed “substantial concernsas to the reliability of FTX’s financial statements and believed that there were “at least $372 million in unauthorized transfers“. The managers of the companyhave only located and secured a fraction of the FTX Group digital assets they hope to recover“, he specified. FTX’s new boss also denounced the statements “inconsistent and misleadingof Sam Bankman-Fried since his resignation, specifying that the latter no longer spoke on behalf of the company.

In a private Twitter chat with a Vox reporter published Thursday, Sam Bankman-Fried said he regretted his decision to place FTX under Chapter 11 bankruptcy protection. “Everything would be about 70% fixed if I hadn’t done this“, he estimated.

Sam Bankman-Fried also attacked American regulators, judging that the latter “do not protect consumers at all» and that they «are unable to tell the difference between what is good and what is bad“. “What I said was partly thoughtless or rude. I was venting and didn’t intend for this to be published“, he tweeted.

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