John J. Ray III, the new director of sinking cryptocurrency exchange FTX, said the bankruptcy was “of an unprecedented type”.
John J. Ray III, the new director of sinking cryptocurrency exchange FTX, said the bankruptcy was “of an unprecedented type”.
Ray also managed the bankruptcy process of energy company Enron, which went bankrupt in 2001 with a major scandal.
“I have never seen such a completely collapsed corporate governance mentality in my career,” said Ray, who submitted his documents for filing for bankruptcy today, according to the New York Times.
In the documents submitted to the court, it was revealed that the employees and consultants were bought houses with the company’s money without being recorded.
According to the documents, the number of individuals and institutions that will receive from FTX may be over 1 million.
Ray said the company is run by a bunch of inexperienced and incompetent people, and the management and control systems are far from competent.
Sam Bankman-Fried, founder and director of FTX, resigned last week after the company was unable to pay its customers back.
Authorities are now investigating whether Bankman-Fried used FTX customers’ money for his other company, Alamada Research.
HE SAID ‘I DID NOT KNOW’
Speaking to the New York Times on Sunday, Bankman-Fried said he had no idea Alamada had “borrowed so much” from FTX.
Ray, who was appointed head of FTX to manage the bankruptcy process, stated that special software is used to hide the fraudulent use of customers’ digital assets, that these assets are not properly recorded and adequate security is not provided.
According to the documents submitted to the court, corporate decisions of FTX were also not recorded. The reason for this was that Bankman-Fried conducted internal communication from a platform where messages were automatically deleted after a while.
John J. Ray III said that Bankman-Fried, who is in the Bahamas, is no longer affiliated with the
John J. Ray III, the new director of sinking cryptocurrency exchange FTX, said the bankruptcy was “of an unprecedented type”.
Ray also managed the bankruptcy process of energy company Enron, which went bankrupt in 2001 with a major scandal.
“I have never seen such a completely collapsed corporate governance mentality in my career,” said Ray, who submitted his documents for filing for bankruptcy today, according to the New York Times.
In the documents submitted to the court, it was revealed that the employees and consultants were bought houses with the company’s money without being recorded.
According to the documents, the number of individuals and institutions that will receive from FTX may be over 1 million.
Ray said the company is run by a bunch of inexperienced and incompetent people, and the management and control systems are far from competent.
Sam Bankman-Fried, founder and director of FTX, resigned last week after the company was unable to pay its customers back.
Authorities are now investigating whether Bankman-Fried used FTX customers’ money for his other company, Alamada Research.
HE SAID ‘I DID NOT KNOW’
Speaking to the New York Times on Sunday, Bankman-Fried said he had no idea Alamada had “borrowed so much” from FTX.
Ray, who was appointed head of FTX to manage the bankruptcy process, stated that special software is used to hide the fraudulent use of customers’ digital assets, that these assets are not properly recorded and adequate security is not provided.
According to the documents submitted to the court, corporate decisions of FTX were also not recorded. The reason for this was that Bankman-Fried conducted internal communication from a platform where messages were automatically deleted after a while.
John J. Ray III, the new director of sinking cryptocurrency exchange FTX, said the bankruptcy was “of an unprecedented type”.
Ray also managed the bankruptcy process of energy company Enron, which went bankrupt in 2001 with a major scandal.
“I have never seen such a completely collapsed corporate governance mentality in my career,” said Ray, who submitted his documents for filing for bankruptcy today, according to the New York Times.
In the documents submitted to the court, it was revealed that the employees and consultants were bought houses with the company’s money without being recorded.
According to the documents, the number of individuals and institutions that will receive from FTX may be over 1 million.
Ray said the company is run by a bunch of inexperienced and incompetent people, and the management and control systems are far from competent.
Sam Bankman-Fried, founder and director of FTX, resigned last week after the company was unable to pay its customers back.
Authorities are now investigating whether Bankman-Fried used FTX customers’ money for his other company, Alamada Research.
HE SAID ‘I DID NOT KNOW’
Speaking to the New York Times on Sunday, Bankman-Fried said he had no idea Alamada had “borrowed so much” from FTX.
Ray, who was appointed head of FTX to manage the bankruptcy process, stated that special software is used to hide the fraudulent use of customers’ digital assets, that these assets are not properly recorded and adequate security is not provided.
According to the documents submitted to the court, corporate decisions of FTX were also not recorded. The reason for this was that Bankman-Fried conducted internal communication from a platform where messages were automatically deleted after a while.
John J. Ray III said that Bankman-Fried, who is in the Bahamas, is no longer affiliated with the co
John J. Ray III, the new director of sinking cryptocurrency exchange FTX, said the bankruptcy was “of an unprecedented type”.
Ray also managed the bankruptcy process of energy company Enron, which went bankrupt in 2001 with a major scandal.
“I have never seen such a completely collapsed corporate governance mentality in my career,” said Ray, who submitted his documents for filing for bankruptcy today, according to the New York Times.
In the documents submitted to the court, it was revealed that the employees and consultants were bought houses with the company’s money without being recorded.
According to the documents, the number of individuals and institutions that will receive from FTX may be over 1 million.
Ray said the company is run by a bunch of inexperienced and incompetent people, and the management and control systems are far from competent.
Sam Bankman-Fried, founder and director of FTX, resigned last week after the company was unable to pay its customers back.
Authorities are now investigating whether Bankman-Fried used FTX customers’ money for his other company, Alamada Research.
HE SAID ‘I DID NOT KNOW’
Speaking to the New York Times on Sunday, Bankman-Fried said he had no idea Alamada had “borrowed so much” from FTX.
Ray, who was appointed head of FTX to manage the bankruptcy process, stated that special software is used to hide the fraudulent use of customers’ digital assets, that these assets are not properly recorded and adequate security is not provided.
According to the documents submitted to the court, corporate decisions of FTX were also not recorded. The reason for this was that Bankman-Fried conducted internal communication from a platform where messages were automatically deleted after a while.
John J. Ray III said that Bankman-Fried, who is in the Bahamas, is no longer affiliated with the company and his statements do not reflect the truth.
The Financial Management Authority (FCA), the regulator of the financial sector in the UK, that issued a warning in September stated that FTX provides services in the UK without the necessary permits, and said, “You may not get your money back if things go badly.”
After the company went bankrupt, FCA, which created a website for those who lost money in FTX, stated that these people had very limited opportunities.
The Bank of England also said that the collapse of FTX was not at a level that would harm the economy, but that more regulation should be made on cryptocurrencies.
Associate Professor of Financial Technology, University of Liverpool. Dr. Gavin Brown states that 42 percent of the crypto exchanges that have collapsed to date have “disappeared without a trace”.
Source: BBC
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