The Enron liquidation was also overseen by the liquidator who presided over the Chapter 11 bankruptcy of FTX. He stated that the FTX mess is “unprecedented”.
The accounting scandal and subsequent collapse of the seventh largest company in America, more than 20 years ago was truly epic.
Enron, the energy giant, was exposed in 2001 for concealing huge losses through an accounting cover-up. The same person who presided over Enron’s bankruptcy in 2001 has been appointed to guide FTX through Chapter 11.
One could argue that John Ray III may have seen it all throughout his career. His comments about the “unprecedented mess”, left by Sam Bankman Fried, make for grim reading.
Ray made comments about the FTX management’s “complete lack of trustworthy financial information” in Thursday’s Chapter 11 bankruptcy filing.
Entrepreneur published an article about Ray stating:

“Unacceptable management practices included using an unsecured group email address as the root user to gain confidential private keys for the FTX Group companies around world, the inability to daily reconcile positions on the blockchain, software to hide the misuse of customer funds, Alameda’s secret exemption from certain aspects FTX.com’s auto-liquidation protocol and the Dotcom Silo (inwhich third parties had invested), and the lack of independent governance between Alameda (owned 90% and 10% respectively by Mr. Bankman-Fried) and 10% by Mr.

Ray highlighted the fact that there were no decision-making records. Ray explained:

“Mr. Bankman Fried often communicated using applications that were set up to auto delete after a brief period of time and encouraged employees to do so.”

Ray now has to verify the accounts of those who have recorded transactions.
Disclaimer: This article is intended for informational purposes only. This article is not intended to be used for legal, tax, investment or financial advice.

  

The Enron liquidation was also overseen by the liquidator who presided over the Chapter 11 bankruptcy of FTX. He stated that the FTX mess is “unprecedented”. The accounting scandal that led to the collapse of the seventh largest company in America 20 years ago was truly epic. Enron, the energy giant, was exposed in 2001 for concealing huge losses through an accounting cover-up. The same person who presided over Enron’s bankruptcy in 2001 has been appointed to guide FTX through Chapter 11. It is possible that John Ray III may have seen it all his career. Ray’s comments on the “unprecedented chaos” left by Sam Bankman Fried are not encouraging. He also criticised the FTX management of “complete lack of trustworthy financial information” as well as “compromised system integrity.” Entrepreneur reported that Ray stated:
“Unacceptable management practices included using an unsecured group email address as the root user to gain confidential private keys for the FTX Group companies around world, the inability to daily reconcile positions on the blockchain, software to hide the misuse of customer funds, Alameda’s secret exemption from certain aspects FTX.com’s auto-liquidation protocol and the Dotcom Silo (inwhich third parties had invested), and the lack of independent governance between Alameda (owned 90% and 10% respectively by Mr. Bankman-Fried) and 10% by Mr.
Ray highlighted the fact that there were no decision-making records. Ray explained:
“Mr. Bankman Fried often communicated using applications that were set up to auto delete after a brief period of time and encouraged employees to do so.”
Ray now has to verify the accounts of those who have recorded transactions. This article is not intended to be used in place of legal, tax, financial, or any other advice.