FTX Update: New CEO Lambasts Bankman-Fried For Company’s Downfall; Funds Reportedly Used For Buying Employees’ Houses?

The new FTX CEO, John Ray III, criticizes the company’s business handling. 

(Photo : Photo Illustration by Michael M. Santiago/Getty Images)
In this photo illustration, the FTX website is seen on a computer on November 10, 2022 in Atlanta, Georgia. Binance, the world’s largest cryptocurrency firm, agreed to acquire FTX, another large cryptocurrency exchange, in a rushed sale in order to prevent a liquidity crisis, which is known as the “Lehman Moment” in the crypto industry.

For those who don’t know who he is, Ray is also the one who took over after Enron’s bankruptcy. 

Now, he has a new company that he needs to fix. Previously, the crypto exchange platform filed for bankruptcy. 

Because of this, many people condemned former CEO Sam Bankman-Fried.

Because FTX’s downfall is a serious case in the cryptocurrency market, John said he would work with regulators to investigate the ex-chief executive officer. 

New FTX CEO Criticizes Company’s Downfall

According to CNBC’s latest report, John Ray III shared his disappointment regarding the downfall of FTX. 

New FTX CEO Criticizes Company's Downfall; Funds Were Used to Buy Employees' Houses?

(Photo : Photo Illustration by Leon Neal/Getty Images)
In this photo illustration a notice warning against deposits, and that FTX is currently unable to process withdrawals, is displayed on a screen on November 10, 2022 in London, England. The Bahamas-based crypto exchange’s larger rival, Binance.

Also Read: Former FTX CEO Denies Speculations Fleeing to South America After Resignation

The new CEO said that he has never seen such a complete failure during his 40 years of legal and restructuring experience. 

“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,” said the FTX official via Reuters. 

In his bankruptcy filing, Ray also said that he doesn’t trust the balance sheets provided by the digital coin exchange firm, as well as its subsidiaries and partner companies.  

FTX’s Funds Used to Buy Employees’ Houses? 

Ray’s bankruptcy declaration claimed that the corporate funds of the company were used to purchase houses of employees. 

The new CEO explained that the company’s accounting for spending was done in a way that was not good for the business. 

He concluded this mismanagement because of FTX’s lack of disbursement controls. As of writing, it is still unclear the sources of the alleged money used to buy its staff homes. 

Aside from the ongoing bankruptcy investigation, FTX also faced other issues. 

These include a possible FTX security breach. 

Meanwhile, experts shared their concerns regarding the effects of FTX’s bankruptcy on the crypto market. 

For more news updates about FTX and other crypto exchange platforms, keep your tabs open here at TechTimes.

Related Article: FTX Might Have Kept in Touch With More than One Million Creditors Involved in the Bankruptcy Case

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Written by Griffin Davis

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