The Guy in Charge of FTX Bankruptcy Calls Crypto Company ‘A Complete Failure’ of Corporate Controls

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John Ray III, who once handled the Enron debacle, called out Sam Bankman-Fried for concentrating power in the hands of ‘potentially compromised individuals.’

He cited the companies’ failed system integrity and faulty regulatory oversight. He also noted that FTX had concentrated company control “in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals.”

It’s unclear exactly whom he’s calling “potentially compromised,” but the buck might very well stop at former CEO Sam Bankman-Fried. The once-leader in the crypto space has remained out of arms reach in the Bahamas, where his many company holdings were based out of. All the while he’s been by claiming he’s working hard to reclaim the millions of dollars of users’ funds that were locked in their exchange accounts.Many of Bankman-Fried’s crypto-centric businesses were under the umbrella of the West Realm Shires, which included FTX US and other U.S.-centric entities. The once-CEO’s crypto hedge funds were led by Alameda Research but that so-called “silo” of corporate entities also included several investment entities.

The latest reports coming out of the FTX debacle have noted Bankman-Fried, who often goes by SBF, had created backchannels that allowed him to secretly funnel $10 billion of customer funds from FTX to Alameda, even though they were meant to be separate entities. Previous bankruptcy documents saidG/O Media may get a commissionor Black Friday, uHoo is $140 off its original price, plus you’ll get one year of uHoo’s Premium plan, with customized alerts about air quality.

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