- FTX Employees Used Company Funds to Buy Homes in the Bahamas.
- The new CEO wrote in a 30-page document filed with the U.S Bankruptcy Court for the District of Delaware.
- John Ray believes that the firm has failed on many levels.
The Bahamas real estate and other personal property were purchased using FTX’s business cash. This is in accordance with a recent bankruptcy filing that CNBC first made public.
“In the Bahamas, I understand that corporate funds of the FTX group were used to purchase homes and other personal items for employees and advisors.” John Ray, the new CEO wrote in a 30-page document. This was filed with the United States Bankruptcy Court for the District of Delaware.
John Ray III, the new CEO of FTX, is an expert in insolvency who oversaw the liquidation of Enron. Therefore, he declared that the crypto group’s insolvency is the greatest instance of corporate failure he has witnessed in more than 40 years.
Surprisingly, John Ray III, the man chosen to oversee the FTX bankruptcy, claimed in a court document that he had never witnessed “such a catastrophic collapse of corporate controls and such a complete absence of trustworthy financial information.”
Ray claimed to have discovered “compromised systems integrity,” “faulty regulatory oversight abroad,” and a “concentration of control in the hands of a very small group. This was a group of inexperienced, unsophisticated, and potentially compromised individuals” at FTX international, FTX US, and Bankman-Alameda Fried’s Research trading company.
Additionally, among the assets listed in the document was $4.1bn of loans from Alameda. It also included $3.3bn which was to Bankman-Fried personally and to an entity he controlled.
Bankman-Fried told the Financial Times that FTX had “accidentally” given $8bn of FTX customer funds to Alameda. The founder and former CEO of the now-infamous cryptocurrency exchange, Sam Bankman-Fried, stated he regretted his decisions less than a week after the firm filed for bankruptcy.
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