Bankruptcy lawyers for cryptocurrency exchange FTX have submitted 41 pages of legal documents on how Sam Bankman-Fried manages the company and the flaws on the company’s balance sheets.
The company’s lawyers submitted documents to the court in two parts, containing the evaluations of the new CEO of FTX, John Ray, about the company.
Court Documents Revealed About FTX
New CEO Ray said the following about the company’s situation:
It has been claimed that SBF, the founder of FTX, does not know how much FTX US owes users. “As far as I know […] FTX US had enough money to reimburse all customers,” SBF tweeted on Nov. 15.
The balance sheet on the files shows FTX US’s assets are $1,360,665 and its liabilities are only 316,014. However, it is stated that SBF did not reflect some details in the financial statements.
Breach of Privacy
Ray stated that confidentiality was also violated in the company, saying the following.
Other problems include the lack of daily reconciliation of available positions, the use of software to hide misuse of client funds, and FTX.com’s covert exemption from certain aspects of its automatic liquidation protocol and lack of independent management.
SBF’s Management Is Also Criticized
The SBF’s tweeting with journalists, late-night messaging, and its constant “destructive” attitude were harshly criticized.
SBF also received a great response for the interview he gave to Vox recently. The former CEO of the company said that these statements were not made for the purpose of making them public.
However, it was stated that FTX has never had a functioning board until now.
FTX Staff Unaware
Many FTX employees were unaware of how dire the situation at the company was.
Lastly, Ray said that he sent his employees’ payment requests through a chat platform and that a group of supervisors gave approval to the employees using emoji.