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Wednesday, December 7, 2022

New FTX CEO Rebuke of Sam Bankman-Fried Dealings, Contradicts Davis Assessment

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New FTX Boss John Ray harshly criticized crypto-white knight Sam Bankman-Fried and his transactions in the Bahamas, which directly opposes Prime Minister Philip Davis’ assessments of FTX’s operations in the Bahamas.

Ray wrote in a court filing in Delaware, “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.

“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.”

However, Davis in his first comment on the FTX’s fiasco said in the House of Assembly that officials have not found any anomalies.

“We have not identified any deficiencies in our regulatory framework that could have avoided this.”

Davis continued, “I have every confidence that the Bahamas will emerge from the proceedings involving FTX – proceedings taking place here as well as in other jurisdictions – with an enhanced reputation as a solid digital assets jurisdiction.”

Ray, who is an expert in financial scandals like Enron, rebuked FTX’s poor record-keeping, the inexperienced senior managers, and the use of company funds to purchase real estate in the Bahamas.

Ray said the exchange had suffered an “unprecedented and complete failure of corporate controls.”

Last week, the Securities Commission Bahamas froze Bankman-Fried’s assets after his 32-billion-dollar empire collapsed.

Since filing for bankruptcy, he appointed Ray as the new CEO.

Bankman-Fried is expected to testify on Capitol Hill next month to account for purported billions of dollars that evaporated in the crypto exchange.

 

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