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In sharp criticism of Sam Bankman-Fried’s style of management, the new 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.
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.
