New FTX CEO Says Former Billionaire Bankman-Fried Led ‘Unprecedented’ Failure—’Incessant’ Tweets Undermine Bankruptcy Case

“Never in my career have I seen such a complete failure of corporate controls… as occurred here,” Ray said in a Delaware bankruptcy court filing unveiled Thursday, as he also criticized FTX’s “complete absence of trustworthy financial information.”

In his declaration, the veteran bankruptcy attorney outlined his experience cleaning up after “several of the largest corporate failures in history” and then called the situation at FTX “unprecedented”—marked by “faulty regulatory oversight abroad” and controlled by a “very small group of inexperienced, unsophisticated and potentially compromised individuals.”

Ray also said he accepted the position as CEO in the “early morning hours” of last Friday, the day FTX announced it had commenced Chapter 11 bankruptcy proceedings and that its former billionaire CEO, Sam Bankman-Fried, had resigned from the company following the sudden liquidity crisis it experienced in the days prior.

Ray went on to detail what several financial statements for FTX and Bankman-Fried’s proprietary trading firm Alameda alleged and repeatedly said he did not have “confidence” in the information because the statements were unaudited and produced while controlled by Bankman-Fried.

In a separate filing, Ray also accused Bankman-Fried of undermining FTX’s bankruptcy case, blasting the “celebrity…, his unconventional leadership style, incessant and disruptive tweeting since [Friday]

, and the almost complete lack of dependable corporate records” at FTX.

The filing comes after a series of nearly three dozen bizarre tweets from FTX’s former CEO—in which he acknowledged becoming “overconfident and careless”—prompted Ray to issue a statement saying Bankman-Fried “does not speak on [FTX’s] behalf.”