What’s In the 41 Pages of Court Records About FTX?
Chapter 11 attorneys for cryptographic money trade FTX have presented a 41-page authoritative record about how Sam Bankman-Seared dealt with the organization and the defects contained in the organization’s asset reports.
The company’s lawyers submitted documents to the court in two parts containing FTX’s new CEO John Ray’s assessments of the company.
Court Documents Related to FTX Revealed
The new CEO Ray said the following about the company’s situation:
“I have never seen anything in my career where corporate controls have been so unsuccessful and secure financial information has been missing.
From a dangerous system, to faulty regulatory oversight abroad, to the concentration of control in the hands of a very small, inexperienced and uninformed group, this is an unprecedented situation.”
It has been suggested that FTX founder SBF did not know how much FTX US owed users. On November 15, SBF shared a tweet stating that “As far as I know […] FTX US had enough money to pay all customers back”.
The balance sheet included in the filings shows that FTX US has assets of $1,360,665 and debts of only $316,014. However, it is stated that the SBF does not reflect some details in the financial statements.
Violation of Confidentiality
Ray said, noting that privacy was also violated at the company.
“Unacceptable management practices included the use of an unsecured group email account to access confidential private keys and critically sensitive data for FTX Group companies worldwide”
Among other problems, the absence of daily reconciliation of the available positions, and the misuse of customer funds and the use of software to hide FTX.com’s automatic purging of certain aspects of the secret protocol independent management include lack of exemption.
The Management of the SBF is Also Criticized
The SBF’s tweeting with journalists, late-night messaging and constant “destructive” attitude were sharply criticized.
“Mr. This Chapter 11 case is unprecedented in terms of Bankman-Fried’s reputation, his unusual leadership style, his disturbing tweets that have been incessant since the application was submitted, and his lack of reliable company records.”
SBF also received a great reaction due to an interview he gave to Vox recently. The former CEO of the company said that these statements were not made with the intention of being made public.
However, it was stated that FTX has never had a functioning board of directors until now.
“The appointment of administrators will provide FTX Group with a proper corporate governance for the first time.
FTX Employees Were Unaware of the Situation
Many FTX employees were unaware of how dire the situation was at the company.
“Based on the information obtained to date, my opinion is that many employees of the FTX Group, including some senior managers, were not aware of the shortcomings. The most damaged by these events are former employees and managers whose personal reputations and investments have been damaged.”
Ray said he finally communicated the employees’ pay requests through a chat platform, and a group of supervisors gave employees consent using emojis.
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