The new chief executive of collapsed cryptocurrency trading firm FTX has 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 chief executive and founder Sam Bankman-Fried resigned.