“A complete failure”: the new boss of FTX castigates the methods of his predecessor

After the fall, it's time to settle accounts.

The new boss of cryptocurrency exchange FTX, which declared bankruptcy last week, denounced the calamitous management of the company by his predecessor and co-founder of the platform, Sam Bankman-Fried.

"Never in my career have I seen such a complete failure of corporate controls and such a glaring absence of reliable financial information as has occurred," John Ray III said in a court filing. this Thursday in a Delaware bankruptcy court.

To read also "What shit did I get myself into?"

: they lost everything (or almost) with the bankruptcy of FTX

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 (nicknamed "SBD") as the company faced a serious solvency crisis, spreading a wave of panic in the world of virtual currency.

“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 in the early 2000s oversaw the bankruptcy of former US energy giant Enron.

$372 million in unauthorized transfers

The new boss expressed "substantial concerns" about the reliability of FTX's financial statements and estimated that there were "at least $372 million in unauthorized transfers."

Company executives “have only located and secured a fraction of the FTX Group digital assets they hope to recover,” he said.

The new boss of FTX also denounced SBD's "inconsistent and misleading" statements since his resignation, specifying that the latter no longer spoke on behalf of the company.

In a Twitter private chat conversation with a Vox reporter published on Thursday, SBD said it regretted its decision to place FTX under Chapter 11 bankruptcy protection.

"Everything would be about 70% settled if I hadn't done that," he said.

Sam Bankman-Fried also attacked US regulators, saying that they “do not protect consumers at all” and that they “are unable to tell the difference between what is good and what is bad”.

After the publication of this exchange, the former boss tried to explain his remarks.

“What I said was partly thoughtless or rude.

I was venting and had no intention of this being published,” he tweeted.