{"id":6013,"date":"2022-11-17T16:13:20","date_gmt":"2022-11-17T16:13:20","guid":{"rendered":"http:\/\/ci02b0916e700025c3"},"modified":"2022-11-17T16:13:20","modified_gmt":"2022-11-17T16:13:20","slug":"ftx-exchange-release-day-one-bankruptcy-filing","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/ftx-exchange-release-day-one-bankruptcy-filing","title":{"rendered":"FTX Exchange Release Day One Bankruptcy Filing: \u201cComplete Failure\u201d"},"content":{"rendered":"
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FTX Exchange, following the collapse of its business, has filed its first day declaration in bankruptcy court citing a \u201ccomplete failure of corporate controls,\u201d per a court filing.<\/a><\/p>\n

John J. Ray III, the newly appointed CEO of FTX Exchange, addressed the many issues facing FTX Exchange and the lack of leadership exhibited by Sam Bankman-Fried and other executives previously in charge of the company. <\/p>\n

\u201cNever 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,\u201d said Ray. \u201cFrom 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.\u201d<\/p>\n

Ray also explained that he has over 40 years of experience in restructuring companies, such as what is needed for FTX. His words cut a bit deeper when one realizes someone with that level of experience has never witnessed \u201cfailure\u201d at this level. <\/p>\n

The declaration spells out five core objectives that the new leadership team has in order to get things moving in the right direction: implementation of controls, asset protection and recovery, transparency and investigation, efficiency and coordination, and maximization of value. <\/p>\n

Additionally, Ray expressed his concerns for currently available audited financial statements. Prager Metis, the audit firm for said documentation, is listed as the \u201cfirst-ever CPA firm to officially open its Metaverse headquarters in the metaverse platform Decentraland.\u201d<\/p>\n

The new CEO of FTX explained that he did not know anything about this auditing firm and stated \u201cAs a practical matter, I do not believe it appropriate for stakeholders or the Court to rely on the audited financial statements as a reliable indication of the financial circumstances of these Silos.\u201d<\/p>\n

Furthermore, Ray expressed the improper use of FTX funds \u201cto purchase homes and other personal items for employees and advisors.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"

The newly appointed CEO of FTX provides initial bankruptcy filing calling previous management a \u201ccomplete failure\u201d and details misuse of corporate funds.<\/p>\n","protected":false},"author":2785,"featured_media":5702,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[828,1833,93,830],"class_list":["post-6013","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-ftx","tag-john-j-ray-iii","tag-news","tag-sam-bankman-fried"],"author_data":{"id":2785,"name":"Shawn Amick","nicename":"shawn-amick","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/MjEwMTYzMzc3Njg5ODYzNjQ2-96x96.webp"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/fhdkk4svsae22ts.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/6013","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2785"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=6013"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/6013\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/5702"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=6013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=6013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=6013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}