• December 5, 2023


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New FTX’s CEO Accuses Former Exchange Management of Covering Up Illegal Use of Client Funds

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New FTX CEO John Ray has accused Sam Bankman-Fried, the former head of the platform, and other ex-exchange executives, of covering up the illegal use of client funds and “secretly exempting Alameda Research from certain aspects of the auto-liquidation protocol” on the platform.

The current CEO of the exchange has emphasized in a statement to the bankruptcy court that he had many years of experience in the field of business restructuring. He has cited the cases of Enron, Nortel and Overseas Shipholding as examples.

According to him:

“Almost every situation I have been involved in has been characterized by some kind of weakness in internal control, compliance, human resource management and systems integrity. But never in my career have I seen such a complete failure of corporate control and an absolute lack of reliable financial information.”

He has noted that the company did not even have an accounting department.