Corporate funds bought employee homes, no accounting department, uncertainty about who's an employee, and other baffling behavior
John Ray III, CEO of FTX Trading Ltd, who succeeded disgraced founder Sam Bankman-Fried following the collapse of the once notionally valued $32 billion cryptocurrency exchange, told a Delaware bankruptcy court on Thursday that the company is a disaster unlike anything he has ever seen.
On a practical level, Ray isn't sure about the firm's assets or liabilities. With regard to FTX.com, one of four business silos identified in the filing, the court filing notes, Yet even this is unclear. Rays says that since this data was prepared by Bankman-Fried,"I do not have confidence in it, and the information therein may not be correct as of the date stated."
"Cash management procedural failures included the absence of an accurate list of bank accounts and account signatories, as well as insufficient attention to the creditworthiness of banking partners around the world," Ray's court filing says."The FTX Group’s approach to human resources combined employees of various entities and outside contractors, with unclear records and lines of responsibility," the bankruptcy filing explains.
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