Yves Smith of Naked Capitalism, who called everything crypto ‘prosecution futures‘, provides the latest FTX bankruptcy filing:
John J. Ray III, the newly appointed CEO of bankrupt crypto player FTX’s sprawling empire who played the same role in the then-biggest-evah Enron bankruptcy and other big corporate implosions, filed his formal initial assessment with the Delaware bankruptcy court in the form of declaration, embedded below.
As expected the FTX and the companies related to it are a huge criminal mess.
In point 5 of his filing the new CEO is not holding back:
Never in my career have I seen such a complete failure of corporate controls and such 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 very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented. ...
“Potentially compromised individuals” might refer to rampant use of drugs at FTX. But it could also point to some darker connections.
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