"Arrogance, incompetence and greed" led to the implosion of the FTX cryptocurrency exchange , debtors of the now-defunct entity claimed in a report detailing control failures at the exchange . In that report, filed in the U.S. Bankruptcy Court for the District of Delaware, the debtors, which include FTX Trading and its affiliates, further alleged that FTX lacked basic accounting and financial controls and was under the control of a small group of individuals who managed to "silence the dissidence." The most effective vitamin to keep your cholesterol under control "These people stifled opposing voices, commingled and embezzled corporate and client funds , lied to third parties about their dealings, joked internally about their tendency to lose track of millions of dollars in assets, and thus caused the collapse of FTX.
the debtors wrote in their first report since the exchange's bankruptcy in November. "While FTX Group's failure is notable for the enormous damage it caused to a nascent industry, many of its root causes are familiar: arrogance, incompetence, and greed," they argued. The implosion of FTX was shocking and rapid . The exchange, worth $32 billion in early 2022, filed for Chapter 11 bankruptcy on November 11 of the same year, after a week of liquidity crisis. Criminal Asia Phone Number List cases against FTX top brass Sam Bankman-Fried , the platform's co-founder and former CEO, has pleaded not guilty in the US government's criminal case against him. His trial is scheduled for next October. Gary Wang , another co-founder, and Caroline Ellison , former CEO of FTX subsidiary Alameda Research, have pleaded guilty and are working with prosecutors. Former engineering chief Nishad Singh also pleaded guilty.
The report was presented by John J. Ray III, the current CEO and chief restructuring officer of FTX , according to a press release . The debtor's filing was being released "in the spirit of transparency that we promised from the beginning of the Chapter 11 process," Ray stressed. Lack of management and governance controls The report alleges that FTX's management and governance was largely limited to Bankman-Fried, Singh and Wang . For the most part, FTX also lacked independent or experienced personnel in finance, accounting, human resources, and information security, and internal audit systems were scarce. Board oversight was "effectively nonexistent ," they added. The company also had no organizational structure and, at the time of filing for bankruptcy, did not even have a complete list of who its employees were.