Skip to content
Tether Investor

Tether Investor

Breaking Technology News

  • News
  • Culture
  • Social
  • Enterprise
  • Science
  • Mobile
  • Gadgets
  • Internet
  • Cyber Security
  • Video News
  • Privacy Policy
    • DMCA / Copyrights Disclaimer
    • Terms and Conditions
    • Whitelist

Never seen ‘such a complete failure’ of corporate controls, says new FTX CEO who also oversaw Enron bankruptcy

News
November 17, 2022admin

Sam Bankman-Fried, co-founder and CEO of FTX, in Hong Kong, China, on Tuesday, May 11, 2021.

Lam Yik | Bloomberg | Getty Images

Newly

‘Big Short’ Michael Burry on his current positioning: ‘You have no idea how short I am’

In the filing, Ray disclosed that he did “not have confidence” in the accuracy of the balance sheets for FTX and its sister company Alameda Research, writing that they were “unaudited and produced while the Debtors [FTX] were controlled by Mr. Bankman-Fried.”

The document is a declaration from Ray in his new role as CEO of FTX and associated entities, which filed for bankruptcy last week in an implosion that left the crypto world reeling and investors shaken.

Ray excoriated Bankman-Fried and his management team for what were described as lackadaisical controls on systems and regulatory compliance.

“The concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals” was unprecedented, the former Enron recovery boss said.

Ray said a “substantial portion” of assets held with FTX may be “missing or stolen,” following widespread reports on social media of the theft of hundreds of millions in cryptocurrencies.

Coordinating with regulators, Ray wrote, the Chapter 11 bankruptcy process would examine the actions of Bankman-Fried in connection with FTX’s collapse.

Alarmingly, Ray wrote that part of his remit would be to implement controls and basic corporate standards such as “accounting, audit, cash management, cybersecurity, human resources, risk management, data protection and other systems that did not exist, or did not exist to an appropriate degree, prior to my appointment.”

Bankman-Fried and FTX “management practices included the use of an unsecured group email account as the root user to access confidential private keys and critically sensitive data for the FTX Group companies around the world, the absence of daily reconciliation of positions on the blockchain, the use of software to conceal the misuse of customer funds.”

Bankman-Fried wasn’t immediately available for comment.

Sophisticated software was similarly used to conceal mismarked and fraudulent customer positions in the 2008 collapse of Bernie Madoff’s Ponzi scheme.

FTX is presently working to account for an accurate statement of cash and crypto assets. Ray said it would not be “appropriate for stakeholders or the Court to rely on the audited financial statements as a reliable indication of the financial circumstances” of FTX.

Post navigation

Could the Snapdragon 8 Gen 2 SoC Be Slower Than Apple’s A16 Bionic Chip?
FTX used corporate funds to purchase employee homes, new filing shows

Related Posts

SEC revokes unpopular banking rule that blocked Wall Street banks from adopting crypto

January 24, 2025admin

China’s Oppo unveils prototype augmented reality glasses with voice assistant as AI hype hits gadgets

February 26, 2024admin

Cash grab or innovation? The video game world is divided over NFTs

December 20, 2021admin

Recent Articles

  • Samsung Galaxy Z Fold 8 May Feature a Crease-Free Flexible Screen
  • Alienware Area-51, Aurora Laptops With Upgraded Hardware Debut in India
  • Apple Sues YouTuber Jon Prosser for iOS 26 Leaks
  • Google Sues 25 Chinese Entities Over BADBOX 2.0 Botnet Affecting 10M Android Devices
  • Critical NVIDIA Container Toolkit Flaw Allows Privilege Escalation on AI Cloud Services
  • Samsung Galaxy S26 Ultra Tipped to Feature a Slightly Larger Screen
  • From Backup to Cyber Resilience: Why IT Leaders Must Rethink Backup in the Age of Ransomware
  • Huawei Mate XT 2 Chipset and Camera Details Tipped
  • Lava Blaze Dragon India Launch Date, Design and Amazon Availability Confirmed
  • Meta’s Adam Mosseri to Hand Over Threads’ Duties to Gen AI Exec: Report

Startups

  • Google Sues 25 Chinese Entities Over BADBOX 2.0 Botnet Affecting 10M Android Devices
  • Critical NVIDIA Container Toolkit Flaw Allows Privilege Escalation on AI Cloud Services
  • From Backup to Cyber Resilience: Why IT Leaders Must Rethink Backup in the Age of Ransomware
  • Hackers Use GitHub Repositories to Host Amadey Malware and Data Stealers, Bypassing Filters
  • Hackers Exploit Apache HTTP Server Flaw to Deploy Linuxsys Cryptocurrency Miner
  • Europol Disrupts NoName057(16) Hacktivist Group Linked to DDoS Attacks Against Ukraine
  • CTEM vs ASM vs Vulnerability Management: What Security Leaders Need to Know in 2025

Enterprise

  • Microsoft teams with Khan Academy to make its AI tutor free for K-12 educators and will develop a Phi-3 math model
  • Kyndryl and Nvidia team to enable and accelerate enterprise generative AI adoption
  • Does India have what it takes to challenge China in electronics manufacturing?
  • How the Web3 stack will automate the enterprise
  • Three ‘soft skills’ for every developer’s toolbox
  • Dissecting the hype over low-code
  • Cybersecurity is a corporate social responsibility, especially in times of war

Categories

  • Culture
  • Cyber Security
  • Enterprise
  • Entertainment
  • Gadgets
  • Gaming
  • Internet
  • Mobile
  • News
  • Science
  • Social
  • Video News

Useful Links

  • DMCA / Copyrights Disclaimer
  • Terms and Conditions
  • Whitelist Us
  • Disclaimer
  • Privacy Policy
  • Abuse

Categories

  • Culture
  • Cyber Security
  • Enterprise
  • Entertainment
  • Gadgets
  • Gaming
  • Internet
  • Mobile
  • News
  • Science
  • Social
  • Video News
Tether Investor | Theme: News Portal by Mystery Themes.