New FTX boss, who worked on Enron bankruptcy, condemns ‘unprecedented failure’

US corporate restructuring expert John Ray says never in my career have I seen such a complete failure of corporate controls'

In a stinging court filing posted on Thursday, John Ray III, the new boss of the bankrupt crypto exchange FTX, said the company had suffered an unprecedented and complete failure of corporate controls".

Ray has overseen some of the biggest bankruptcies ever, including the collapse of the energy giant Enron, and has 40 years of experience in restructuring companies. He said he had never seen anything as bad as FTX.

Alameda Research (FTX's hedge fund) gave Bankman-Fried a $1bn personal loan and a $543m loan to the director of engineering, Nishad Singh.

Bankman-Fried often communicated by using applications that were set to auto-delete after a short period of time, and encouraged employees to do the same.

Many FTX entities never had board meetings.

Because of historical cash management failures" the debtors do not yet know the exact amount of cash that the FTX Group held.

The debtors have been unable to even prepare a complete list of who worked for the FTX Group because of the chaotic state of its human resources.

Many of the employees of the FTX Group, including some of its senior executives, were not aware of the shortfalls or potential commingling of digital assets and may be some of the people most hurt by these events".