Sam Bankman-Fried Had ‘No Experience in Running a Business, Says New CEO John Ray III

Sam Bankman-Fried, the former CEO of ftx exchange ftx exchange Centralised Exchange , is currently charged with a total of 13 crimes. In November, SBF signed over control as a multibillion-dollar bank run began, and John Ray III took charge. John has been working day and night to restore order in the face of a global firestorm that was allegedly started by SBF. 

John gave his first in-depth description of the control failings at FTX in a court document filed on April 9 in a Delaware Bankruptcy Court.

The FTX Group’s controls, according to Ray’s restructuring team, have “identified extensive deficiencies in the FTX Group’s controls” including a lack of suitable financial and accounting controls. Some 80,000 transactions were reportedly left as unprocessed accounting entries in catch-all QuickBooks accounts titled “Ask My Accountant,” indicating that FTX’s bookkeeping had been neglected.

Despite having very little experience, Ray underlined that co-founders sam bankman fried sam bankman fried Sam Bankman-Fried EntrepreneurInvestor and Gary Wang, together with former engineering director Nishad Sing, had the “ultimate voice in all critical decisions.”

Also read: FTX Founder SBF Faces Scandal for Bribing $40 Million to Chinese Officials to Unfreeze Alameda’s Crypto Accounts

“The management and governance of the FTX Group were largely limited to Bankman-Fried, Singh, and Wang. Among them, Bankman-Fried was viewed as having the final voice in all significant decisions, and Singh and Wang largely deferred to him.10 These three individuals, not long out of college and with no experience in risk management or running a business, controlled nearly every significant aspect of the FTX Group,” he wrote in the filing.

Since the FTX debacle, more than 1 million customers of the company with an $8 billion balance sheet hole have been wondering if they will ever be able to get their savings back. Customer funds’ future, however, is still unknown. A note to creditors a few days ago stated that since declaring bankruptcy in November, hackers have stolen nearly $415 million in cryptocurrency from its worldwide and US exchanges.