<p>Collapsed cryptocurrency exchange FTX suffered a "complete failure of corporate controls" under founder Sam Bankman-Fried, the company's new chief executive said Thursday, calling the situation "unprecedented."</p>.<p>The scathing condemnation came in a filing in US bankruptcy court from John J. Ray -- an executive with 40 years of experience in corporate restructurings including the infamous implosion of Enron in 2001.</p>.<p>Ray lambasted the failures of oversight, incomplete records, missing and unreliable financial statements and "potentially compromised" leadership at FTX, which declared bankruptcy last week -- a stunning downfall for a firm recently valued at $32 billion.</p>.<p><strong>Also Read — <a href="https://www.deccanherald.com/business/business-news/explainer-whats-happening-at-bankrupt-crypto-exchange-ftx-1162162.html" target="_blank">Explainer | What's happening at bankrupt crypto exchange FTX?</a></strong></p>.<p>"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here," Ray said in the filing.</p>.<p>"From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented," he said.</p>.<p>The downfall of FTX came amid growing doubts over its financial stability, with attention focused on the relationship between the exchange and Alameda Research, a trading house also owned by Bankman-Fried, and reports he shifted funds out of the exchange, even as he tried to fill a $7 billion financing gap.</p>.<p>Binance, the world's biggest cryptocurrency platform, backed out of a buyout deal that could have stemmed the fall amid reports about mismanagement of client funds and potential investigations by regulators.</p>.<p>US officials are now calling for more oversight of the industry, and Congress plans to hold hearings to investigate.</p>.<p>Ray said he has "substantial concerns" about the reliability of financial statements and related entities, and noted that there were "at least $372 million of unauthorized transfers."</p>.<p>Executives at the firm -- many of whom Ray said "were not aware of the shortfalls or potential commingling of digital assets" --"have located and secured only a fraction of the digital assets of the FTX Group that they hope to recover."</p>.<p>The implosion was a spectacular reversal of fortune for the founder and one-time cryptocurrency wunderkind Bankman-Fried.</p>.<p>Ray slammed the former CEO saying he "often communicated by using applications that were set to auto-delete," and making clear he no longer speaks for FTX notwithstanding his frequent public declarations.</p>.<p>Bankman-Fried "continues to make erratic and misleading public statements," Ray said, pointing to comments published by Vox on Thursday in which the disgraced executive said he regretted filing for bankruptcy.</p>.<p>"F*** regulators they make everything worse," Bankman-Fried said in a direct message on Twitter to the Vox reporter.</p>.<p>He later tweeted that he was "venting" and his comments were meant to remain private.</p>
<p>Collapsed cryptocurrency exchange FTX suffered a "complete failure of corporate controls" under founder Sam Bankman-Fried, the company's new chief executive said Thursday, calling the situation "unprecedented."</p>.<p>The scathing condemnation came in a filing in US bankruptcy court from John J. Ray -- an executive with 40 years of experience in corporate restructurings including the infamous implosion of Enron in 2001.</p>.<p>Ray lambasted the failures of oversight, incomplete records, missing and unreliable financial statements and "potentially compromised" leadership at FTX, which declared bankruptcy last week -- a stunning downfall for a firm recently valued at $32 billion.</p>.<p><strong>Also Read — <a href="https://www.deccanherald.com/business/business-news/explainer-whats-happening-at-bankrupt-crypto-exchange-ftx-1162162.html" target="_blank">Explainer | What's happening at bankrupt crypto exchange FTX?</a></strong></p>.<p>"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here," Ray said in the filing.</p>.<p>"From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented," he said.</p>.<p>The downfall of FTX came amid growing doubts over its financial stability, with attention focused on the relationship between the exchange and Alameda Research, a trading house also owned by Bankman-Fried, and reports he shifted funds out of the exchange, even as he tried to fill a $7 billion financing gap.</p>.<p>Binance, the world's biggest cryptocurrency platform, backed out of a buyout deal that could have stemmed the fall amid reports about mismanagement of client funds and potential investigations by regulators.</p>.<p>US officials are now calling for more oversight of the industry, and Congress plans to hold hearings to investigate.</p>.<p>Ray said he has "substantial concerns" about the reliability of financial statements and related entities, and noted that there were "at least $372 million of unauthorized transfers."</p>.<p>Executives at the firm -- many of whom Ray said "were not aware of the shortfalls or potential commingling of digital assets" --"have located and secured only a fraction of the digital assets of the FTX Group that they hope to recover."</p>.<p>The implosion was a spectacular reversal of fortune for the founder and one-time cryptocurrency wunderkind Bankman-Fried.</p>.<p>Ray slammed the former CEO saying he "often communicated by using applications that were set to auto-delete," and making clear he no longer speaks for FTX notwithstanding his frequent public declarations.</p>.<p>Bankman-Fried "continues to make erratic and misleading public statements," Ray said, pointing to comments published by Vox on Thursday in which the disgraced executive said he regretted filing for bankruptcy.</p>.<p>"F*** regulators they make everything worse," Bankman-Fried said in a direct message on Twitter to the Vox reporter.</p>.<p>He later tweeted that he was "venting" and his comments were meant to remain private.</p>