New CEO of FTX condemns ‘complete failure’ of corporate control

(Alamy/PA)

The new chief executive of collapsed cryptocurrency trading firm FTX says said he has never seen such a “complete failure” of corporate control.

John Ray III, in a filing with the US bankruptcy court for the district of Delaware, said there was a “complete absence of trustworthy financial information”.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” he said.

“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

Mr Ray, who oversaw Enron’s bankruptcy, was named chief executive of FTX less than a week ago when the company filed for bankruptcy protection and its CEO and founder Sam Bankman-Fried resigned.