FTX’s New CEO Criticized Sam Bankman-Fried’s Management

B. Ali
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John J. Ray III, the new FTX CEO, recently delivered a scathing review of Sam Bankman Fried’s bad management methods. John J. Ray was appointed CEO less than a week ago after FTX filed for bankruptcy and Sam Bankman-Fried, the company’s founder and CEO, resigned.

However, John J. Ray recently criticized multiple things, including the company’s top management’s poor record-keeping and absence of expertise, as well as the use of corporate assets to buy real estate in the Bahamas.

The new CEO of the bankrupt cryptocurrency exchange FTX, John Ray III, who managed bankruptcy cases like Enron, stated in a frantic legal brief on Thursday that the company had gone through a massive corporate control disaster. This was witnessed after Sam Bankman-Fried had just resigned as CEO, and the company had just declared bankruptcy.

John Ray Has Negative Opinions About the Management Of Bankrupt Company FTX

It is worth noting that John J. Ray III has nearly 40 years of experience in restructurings and has observed some of the largest commercial disasters in history, such as the collapse of the energy behemoth Enron. 

After analyzing it, he claimed that he had never seen something like FTX Bankrupt Organization.

Never in my career have I seen such a complete failure of corporate controls and a complete absence of trustworthy financial information as occurred here. From compromised systems integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a tiny group of inexperienced, unsophisticated, and potentially compromised individuals, this situation is unprecedented.”

Sam Bankman Mismanaged the Insolvent Exchange

As we all know, a lawsuit has been filed against the FTX company and the celebrities who backed it, including Gisele Bündchen (Brazilian fashion model), Larry David (American comedian), Shaquille O’Neal (American basketball player), and Naomi Osaka (Japanese fashion model) (Japanese tennis player).

This occurred following the company’s demise, which had a negative impact on the cryptocurrency market. Over a million creditors are now expected by the company. Ray, on the other hand, was hired shortly before FTX declared bankruptcy and founder Sam Bankman-Fried stepped down as CEO.

FTX’s Bahamian liquidators concluded on Wednesday that the company may have participated in severe fraud and mismanagement. According to data obtained from the petition, FTX had $9 billion in commitments and $1 billion in liquid, easily tradeable assets prior to its bankruptcy.

In the meantime, Ray’s team found $740 million in virtual currency kept by FTX and other associated organizations. He said that the figures represented only a small percentage of the digital assets that the FTX Group intended to recover.

 

About B. Ali PRO INVESTOR

Live webinar speaker and derivatives (Forex, Crypto, and Indices) analyst with a broad range of skills for evaluating financial data, investment trends, technical analysis, fundamental analysis, and the best ways to strategies investment selection.  Expertise: Trading Psychology; Speculative Positioning & Market Sentiment; Technical & Fundamental Analysis.