FTX Blasts SBF
John Ray, the newly installed CEO of bankrupt cryptocurrency firm FTX, accused former CEO Sam Bankman-Fried of unprecedented corporate negligence and mismanagement, according to legal filings yesterday. Lawyers for the company also accused Bankman-Fried of attempting to steer the jurisdiction of bankruptcy proceedings to the Bahamas, where the company is located.
The cryptocurrency exchange platform, once valued at $32B, collapsed over the span of a week following a report it had lent—and lost—billions in customer deposits to its sister investor trading firm. Subsequent reporting revealed a disorganized balance sheet stored in an Excel file, listing $9B in liabilities and $900M in liquid, or readily accessible, assets. Ray previously oversaw the liquidation of energy-trading company Enron, which imploded in 2001 under the weight of illicit corporate accounting practices.
Separately, 30-year-old Bankman-Fried initiated a lengthy private Twitter discussion with a financial reporter this week. Read the exchange here (warning—language).