FTX’s New CEO Harshly Condemns SBF And Discloses Company’s Inside Secrets

FTX’s new CEO John J. Ray III in a series of documents filed in a Delaware court for the “unprecedented” mismanagement of his predecessor Sam Bankman-Fried was heavily condemned. It also revealed the company had only $560 million in cash; a large loan from the executives, and management chaos.

FTX’s new CEO and restructuring director, John Ray, harshly criticized the SBF for its mismanagement in a series of filings filed in a Delaware court on November 17.

“Never in my career have I witnessed such a complete failure to control a business and a complete lack of reliable financial information as has happened here. And The concentration of control in the hands of a very small number of inexperienced, unsophisticated and potentially threatening individuals is unprecedented.”

John Ray said

Court documents also indicate that the management of FTX is chaotic: for example, FTX employees submit payment requests on the chat platform and custodians respond and approve spending via emojis. Or the fund of FTX company is an Employee and a consultant to buy a house and personal items listed in the employee’s personal name.

FTX Corporation does not even keep proper books and records. In addition, FTX Group has billions of dollars in investments, but does not have a complete record. SBF regularly uses temporary software and encourages employees to do so.

FTX bankruptcy advisors found $740 million in crypto and $560 million in cash in cold storage. It’s liquidity gap is currently considered to be $8 billion.

The document also says Alameda Research lent Bankman-Fried $1 billion directly, while company’s Chief Technical Officer, Nishad Singh, also received a $543 million loan from the company. In addition, it also lent FTX co-CEO Ryan Salame $55 million. It is currently uncertain what these loans will be used for.

The documents also reveal that Alameda Research, which has an advantage in conducting risky leveraged trades on FTX, has been granted “secret exemption” from liquidation.

Previously, Zhu Su, founder of Three Arrows Capital, speculated in his tweet that during the crash of Luna, as Alameda may have the right not to be liquidated on its own platform, so the sell-off of up to 99% in three consecutive days caused great loss for Alameda.

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