- FTX's new CEO John J. Ray filed an explosive bankruptcy filing on Thursday.
- The Chapter 11 filing highlights numerous issues at the cryptocurrency platform.
FTX's new CEO John J. Ray said in an explosive Chapter 11 filing on Thursday that he's never seen a company in as bad a shape as FTX in 40 years of dealing with bankruptcies.
The bankruptcy filing, a first day declaration, is a document in which advisors for the bankrupt company lay out their story of what happened leading up to the chapter 11 filing.
The cryptocurrency exchange filed for bankruptcy on November 11, and former CEO Sam Bankman-Fried stepped down the same day. Bankman-Fried's trading firm Alameda Research and about 130 affiliated companies have also filed for bankruptcy. Bankman-Fried saw his net worth plunge around 94% last week when Binance walked away from a deal to buy the company, citing reports of mishandled customer funds and the possibility of a federal investigation.
The Thursday filing highlights glaring issues at FTX, including the inability to properly track cashflow and numerous security failures. In the filing, Ray repeatedly blasts Bankman-Fried and FTX. The new CEO said FTX is full of "inexperienced" executives and demonstrates a "complete failure of corporate controls," from auto-deleting messages and ghost employees to allegations of misappropriating funds.
Bankman-Fried and FTX did not respond to a request for comment from Insider ahead of publication.
Read the full 30-page report below.
FTX bankruptcy filing 11/17/22 by Steven Tweedie on Scribd