'Complete failure:' Filing reveals staggering mismanagement inside FTX | CNN Business

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FTX’s new CEO, John J. Ray III, has written in a court filing “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”

A new court filing about Sam Bankman-Fried’s bankrupt companies reveals a crypto empire that was colossally mismanaged and potentially fraudulent — a “complete failure of corporate controls” that eclipses even that of Enron. “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,” FTX’s new CEO, John J. Ray III, wrote in a court filing Thursday.

Since losing control of his companies, Bankman-Fried has retained a white-collar criminal defense attorney from the firm Paul Weiss. The attorney, Flumenbaum, has previously represented the sons of Ponzi schemer Bernie Madoff and junk-bond trader Michael Milken, who spent two years in prison for securities fraud in the late 1980s. Federal prosecutors for the Southern District of New York are investigating the collapse of FTX Trading, a person familiar with the matter told CNN.

 

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Corporate control lol what about the democrats who knew what was going on looked the other way and still chose to take his money

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