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FTX – An “unprecedented” failure according to its new CEO



The FTX platform scandal continues to take new twists and turns. With a former CEO Sam Bankman-Fried Drowning his Twitter account with posts bordering on mental breakdown. And a legal surrogate by the name of John Ray III who is trying to understand how all this could have happened. He explains that he has never seen such a situation in his entire career as a debt collector.

The FTX affair is drowning the networks and the media with one news story after another until it gets out of hand. This sometimes Amidst mere speculation and rumors about everything related to its former CEO Sam Bankman-Fried. and his personal life choices.

But as the author reminds us Vitalik Buterin, it is still important to “reflect and determine which elements contributed to the fraud and which did not. However, the exercise seems very difficult if the legally appointed bankruptcy trustee, John Ray III, is to be believed.


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FTX – A total and unprecedented failure.

After the departure of Sam Bankman-Fried, the legislator in charge of the FTX case appointed one John Ray III to succeed him and act as “chief debtor.”. The latter did not fail to point out that the disgraced former billionaire no longer held an official position in the company, despite his numerous improbable public interventions in this regard.

The Debtors have made it clear to employees and the public that Mr. Bankman-Fried is not an employee of the Debtors and does not speak on their behalf. Mr. Bankman-Fried, who is currently in the Bahamas, continues to make erratic and misleading public statements.

John Ray III

An activity that John Ray III carries out from his offices in the United States. The objective of this activity is shed light on the dysfunctions and frauds that led to this economic catastrophe, which is still difficult to accept. And the least we can say is that the first observation made is damning. In fact, John Ray III has just made an official statement regarding his control operations that hardly allows us to imagine the magnitude of the internal fraud in this exchange.

Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial reporting as has occurred here. This situation is unprecedented, from the integrity of systems and flawed regulatory oversight overseas to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals.

John Ray III

FTX – “Unacceptable” Practices

And John Ray III’s list of grievances against the (non) management of the FTX platform is chilling. He also states that the real estate purchases were made with company funds. on behalf of certain employees and consultants. But also that “extremely sensitive data” (private keys and the like) circulated freely and without any security through instant messaging. This is a bitter pill to swallow for the cryptocurrency sector.

And, of course, all for the benefit of a limited number of members of society. The latter have never bothered to put in place a proper system of governance. Or even taken the time To organize even one meeting of any board of directors. at the Bahamas branch of FTX Digital Markets. So it is not too difficult to find fault with Sam Bankman-Fried and his associates. But this will not return the lost funds in any case. for its millions of users still in shock….

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