FTX Latest - Crypto Prices Stable as New CEO Condemns 'Complete Failure'. Here's the Shocking Mismanagement Laid Bare
New FTX CEO John Ray reveals today in a court declaration “the complete failure of corporate controls” at bankrupt crypto exchange FTX.
FTX CEO John Ray lays bare the enormity of the task he faces in finding and securing the property of the debtors as the liquidators seek to unravel the governance and management nightmare that is FTX.
Despite the latest grim news, crypto prices are holding up relatively well, with bitcoin firming at around $16,696, and some bright spots such as Litecoin up 8% at $62 and XRP ticking upwards at $0.38, gaining 2.7%.
So far $740 million in crypto has been secured in cold wallets and $560 million of cash.
It also turns out that some parts of the group may be solvent, such as FTX Capital Markets and LedgerX, both regulated entities, so that's some good news for creditors.
Wholly owned equity entities Embed Financial Technologies and Embed Clearing are also thought to be solvent.
Custodian FTX Value Trust Company is also solvent, with the proviso Ray uses throughout his document – "based on the information that I have reviewed at this time".
Also, in his declaration Ray says that $372 million in unauthorised transfers was made in addition to “the dilutive ‘minting’ of approximately $300 million in FTT tokens by an unauthorized source after the Petition Date”.
Other numbers that jump out of the declaration include the $1 billion that Alameda Research, the hedge-fund-turned-trading-desk of the FTX group, loaned to Sam Bankman-Fried and $500 million to Nishad Singh, the former director of engineering at FTX and Alameda Research.
At the top of Ray’s declaration he makes his initial assessment abundantly clear:
“Never in my career have I seen such a complete failure of corporate controls and such a complete
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