The new CEO of FTX accused Sam Bankman-Fried of criminal negligence – Bits Media

Speaking to the court, The new FTX Director General John Ray sharply criticized the miscalculation of the previous administration and the control style of the former head of the Exchange Bankman-Frid.

On Thursday, the first meeting was held in the Court of Delaware. FTX cryptocurrency exchange bankruptcy procedures, as well as the initiation of asset assessment processes. New Exchange Head John Ray (John J. Ray) stated, that since its appointment 11 November, He, together with specialists from Alvarez & Marsal, Sullivan & Cromwell, Nardello & Co., Chainalysis, Kroll and a confidential cybersecurity firm, They worked around the clock, to find and protect investor assets.

His command was faced with the task of collecting information, search and protection of customer funds. The work was complicated by answers to numerous requests of regulatory authorities, decoding of accounting records, And also the preparation of documentation, necessary for submitting to the court.

“I have more 40 years of legal experience and experience of restructuring. I was the chief specialist in several largest corporate bankruptcies: Enron, Residential Capital, Nortel и Overseas. Almost every situation, which I was involved, characterized by defects in internal control, compliance with regulatory requirements, human resources and integrity of systems. but, Never in my career I have seen such a complete failure of corporate control and such a complete lack of reliable financial information, How it happened here ", - said John Ray.

Then Ray explained, that this is an "unprecedented situation", in which all the wine lies with Sam Bankman-Fried (Sam Bankman-Fried) and his team - "a small group of inexperienced, inexperienced and potentially compromised persons ". According to preliminary conclusions, The company did not contain the basis for the introduction of means of control over accounting, Audit, Cash management, cybersecurity, human resources management, risk of data protection and other critical systems for maintaining business systems.

In this regard, the search for location and ensuring the safety of FTX property to fill the competitive mass is difficult. John Ray suggested, that a significant part of the FTX assets may be absent or stolen, and also requested from the court to conduct a comprehensive and open investigation of his complaints against Sam Bankman-Frida.

Previously, the former CEO of FTX said, that most of all he regrets the submission of bankruptcy proceedings. In his opinion, The problems of the exchange would have already been resolved percent on 70.