The new CEO of FTX, John Ray, has a lot to say about their corporate controls and financial information. FTX is saying that the fair value of all assets its holding is $659!
THE FTX FIRST DAY DECLARATION
New CEO John Ray is scathing about Sam Bankman-Fried's management.
"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information."https://t.co/iTGlCA9olr pic.twitter.com/Bd3Pjg4s7L
— kadhim (＾ｰ^)ノ (@kadhim) November 17, 2022
The tweet was posted on the 17th of November 2022 by kadhim, an FT reporter. In the brief, John Ray was talking about his 40 years of career as both a restructuring executive and a CEO for multiple companies.
Yet, FTX was the worse case of corporate control failure, combined with the unavailability of reliable financial information. But that wasn’t all he talked about compromised integrity, faulty regulations, with power concentrated in the hands of unsophisticated, compromised people.
To cap it all, SBF and his co-founders are to be investigated. The same for his debtors, and any relevant third parties. Clearly, a lot is going on in FTX right now.
At its peak, FTX controlled over $20 billion worth of assets. Yet at the time of filing bankruptcy, they had less than $1 billion worth of sellable assets and $9 billion in liabilities.
And everybody is asking, where did all that money go?
Co-mingling user deposits between FTX & Alameda wasn't enough.
They embezzled billions for themselves.
SBF: $1b
Nishad Singh: $540m
Ryan Salame: $55m (People keep forgetting he was one of the largest donors to the republicans)When clawback from politicians? pic.twitter.com/bzmxFENpfj
— Hsaka (@HsakaTrades) November 17, 2022
It would seem they just embezzled the money. Here’s the sharing ratio so far. SBF got $3.3 billion, both directly, or through his entity PaperBird Bit. Nishad Singh embezzled $540 million.
And Ryan Salame got $55 million.
Through that explains where some of the money went, it seems SBF didn’t include the liabilities of customers in his financial report, and it is believed that the Dotcom Silo debtors actually owe liabilities to the FTX customers.
Records show that employees and members of the company straight-up used customer funds to purchase houses and cars for themselves. And none of such transactions were documented.
finally, SBF and Mr wang were the ones with full control over FTX’s digital assets, and they gave that access to whomever they wish. He made it clear that none of FTX’s financial records should be used as a reliable source of facts.
From all the evidence, SBF could be persecuted for his actions.
