The cryptocurrency company this week folded seemingly overnight under a Ponzi-scheme bank rush on its assets. But FTX was long a financial mess, according to its newly appointed CEO, John Ray III, who told a horror story of mismanagement and financial scheming under Bankman-Fried.
In testimony in a filing with the U.S. Bankruptcy Court for the District of Delaware, Ray said that “in his 40 years of legal and restructuring experience,” he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” reported CNBC.
Ray, who is working with regulators to investigate Bankman-Fried, said that the balance sheets of FTX were “unaudited and produced while the Debtors [FTX] were controlled by Mr. Bankman-Fried,” and that Ray did “not have confidence” in them.
Ray said that before he was appointed to oversee FTX, the company under Bankman-Fried lacked basic financial controls like “accounting, audit, cash management, cybersecurity, human resources, risk management, data protection and other systems that did not exist, or did not exist to an appropriate degree, prior to my appointment.”
FTX and Bankman-Fried’s typical “management practices included the use of an unsecured group email account as the root user to access confidential private keys and critically sensitive data for the FTX Group companies around the world,” Ray said, and that under Bankman-Fried’s direction the company used “software to conceal the misuse of customer funds.”
All which might go a long way in explaining reports that FTX was allegedly being used by Bankman-Fried as a giant laundering operation to filter money through Ukrainian crypto systems as a funnel back to campaigns for Democrats and a RINO herd.
Joe Biden & Zelenskyy have been laundering money.
Biden funded Ukraine.
Ukraine funded FTX.
FTX funded Democrats with millions
They impeached Trump for a phone call, they should escort Biden out of office now and we need to cut ties with Ukraine immediately! pic.twitter.com/Y2flwmaoDj
— Terrence K. Williams (@w_terrence) November 14, 2022
The couch-potato former crypto billionaire ranked as the Democrats second-most generous donor, behind oligarch George Soros, and gave upwards of $40 million to Democrats in the 2022 primaries and midterms.
At the same time, FTX also held an asset worth over $7 million called “TrumpLose,” which the Financial Times called “obscure,” according to the Gateway Pundit.
BREAKING: FTX’S BALANCE SHEET HAS A $7M POSITION IN A CRYPTOCURRENCY CALLED “TRUMPLOSE”
— DEGEN NEWS 🗞️ (@DegenerateNews) November 12, 2022