New FTX CEO Blasts Sam Bankman-Fried In Court Filing

In sharp criticism of Sam Bankman-Fried’s style of management, the new FTX CEO John Ray revealed his stance on the company’s activities. Ray said the FTX situation was unlike any corporate failure he witnessed in his 40 year career. He said he never saw anything like FTX’s failure in his roles as chief restructuring officer or chief executive officer in several of the largest corporate failures in history.

Also Read: FTX Hacker Swaps 29.7k BNB; Becomes 31st Largest Eth Holder

Sam Bankman-Fried – The Unprecedented Situation

The new FTX CEO said the situation is unprecedented with what transpired around the crypto exchange’s failure. Ray made the statements in his declaration in the role of CEO for chapter 11 bankruptcy petitions. The declaration also mentioned that authorizing the chapter 11 bankruptcy filings was his first official act as FTX chief executive officer. He mentioned in the latest court filing,

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information.”

Ray also clarified that Sam Bankman-Fried does not have any role in the FTX exchange currently. He also stated that the views of SBF if any do not relate to those of FTX US or Alameda Research. As part of the bankruptcy proceedings decision, the company also announced the stepping down of SBF from the role of CEO. The announcement marked the appointment of John Ray as the new FTX CEO. However, it was stated that SBF would help the new CEO and the team for a smooth transition.

SBF Borrowed Money From FTX

The filing also revealed Sam Bankman-Fried took a $1 billion personal loan from Alameda Research. Also, another top FTX executive Nishad Singh received a $543 million loan from Alameda.

Meanwhile, the FTX Token (FTT) continues to lose heavily in terms of market value. As of writing, the token price stands at $1.59, up 2.06% in the last 24 hours, according to price tracking platform CoinMarketCap. FTT is currently ranked 209 based on market cap, down from the top 60 rank it maintained until recently.

Also Read: FTX CEO: SBF Has No Role At FTX, FTX US, Alameda

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.