NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

FTX New CEO John Ray Reveals More SBF Scandals In Court Filing

Jake Simmons
Jake Simmons
2 years ago
3 mins read
FTX CEO

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The new CEO of collapsed crypto exchange FTX, John Ray III, has filed an initial statement with the U.S. Bankruptcy Court for the District of Delaware, making a scathing judgment of Sam Bankman-Fried and his companies.

Ray was appointed CEO of FTX less than a week ago when founder Bankman-Fried filed for bankruptcy protection for FTX, Alameda and more than 130 related companies and stepped down as CEO.

The new CEO has taken the lead role in several of the largest corporate collapses in history, exposing criminal activity and malfeasance such as in the Enron case. So the man has experience with scandal and mismanagement. Yet, in his first court filing, he states:

Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.

“From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented,” Ray said.

Related Reading

FTX Tether Paolo Ardoino

Paolo Ardoino Talks FTX, Adoption And Self-Custody With NewsBTC

2 years ago

The new CEO also made it known that the Antigua and Bahamas-based FTX Group companies, in particular, did not have adequate corporate governance and many had never held a board meeting. FTX, FTX US and Alameda had virtually “no accounting department”.

In addition, the bankruptcy trustee chalks up the lack of an accurate list of bank accounts and authorized signatories, as well as insufficient creditworthiness of bank partners.

New FTX CEO Reveals Deep Swamp Of Bankman-Fried

What else is Ray revealing? The bankruptcy trustee also stated, among other things, that the “fair value” of all cryptocurrencies held by FTX internationally is only $659!

Further, Ray estimates the total of all consolidated assets to be around $2.56 billion. Only recently, SBF estimated the value at $5.5 billion on Twitter.

Moreover, Ray also discloses the use of company funds to pay for houses and other items for employees. Literally users paid for SBF’s luxury mansion:

I understand that FTX Group corporate funds have been used in the Bahamas to purchase homes and other personal property for employees and consultants. I understand that there appear to be no loan records for some of these transactions and that certain properties have been recorded in the Bahamian records in the personal names of these employees and consultants.

In addition, it is alleged that there may “be very substantial transfers of Debtor property in the days, weeks and months prior to the Petition Date”.

If this weren’t scandalous enough, Ray reveals that Bankman-Fried’s hedge fund has loaned $2.3 billion to… Sam Bankman-Fried himself, to his Paper Bird company.

Want another scandal? The bankruptcy documents also disclose that FTX coded its liquidation protocol in such a way that Alameda was excluded from liquidation. Insane!

Related Reading

This Firm Offers 8 To 12 Cents On A Dollar Of FTX User Deposit Claims

This Firm Offers 8 To 12 Cents On A Dollar Of FTX User Deposit Claims

2 years ago

But that’s far from all. Thus, under Bankman-Fried, FTX did not include customer liabilities in FTX’s financial statements. “I do not believe it appropriate for stakeholders or the Court to rely on the audited financial statements as a reliable indication,” Ray asserted.

Ray also cannot answer the question of who was on Bankman-Fried’s company payroll. “The Debtors have been unable to prepare a complete list of who worked for the FTX Group as of the Petition Date.”

Island Bay Ventures, the company that holds FTX’s stake in Scaramucci’s SkyBridge, is another major issue. Ray can’t find the company’s financials.

The document also indicates that FTX loaned FTT token worth $250 million to BlockFi. Why? Possibly to prop up BockFi….

But there is also good news. The document reveals that SBF’s role in the bankruptcy is to be investigated.

Tweet123Share196ShareSend
Jake Simmons
Jake Simmons

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.

Read more

His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.

Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.

For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.

As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.

In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.

You can engage with his latest takes on Twitter: @realJakeSimmons.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

TAO, Solana, SUI, chainlink

Solana Retests Critical Support Amid Market Pullback – $200 Rally In Danger?

As the month nears its end, the crypto market turns momentarily red, with Solana (SOL) retesting a crucial support level...

Rubmar Garcia 2 hours ago
Bitcoin

Panama Canal Could Prioritize Bitcoin-Paying Ships, Mayor Suggests

Panama City’s mayor, Mayer Mizrachi, put forward an unusual plan at the Bitcoin 2025 conference in Las Vegas on May...

Christian Encila 5 hours ago
Bitcoin

Halfway To Clean: Bitcoin Hits 50% Renewable Mark, Ripple Chairman Reacts

Ripple’s chairman Chris Larsen praised the crypto network’s move toward greener energy this week. He spoke after Ripple handed over...

Christian Encila 7 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Ethereum at Risk? Whale Activity and On-Chain Signals Hint at Further Correction

Ethereum at Risk? Whale Activity and On-Chain Signals Hint at Further Correction

Samuel Edyme 47 minutes ago

AI打造未來一人公司盛行 Snorter預售爆紅開啟個AI智能交易新時代

Mark Mak 1 hour ago
ChatGPT voorspelt: hoe XRP koers kan stijgen naar $13 of $22 in juni

ChatGPT voorspelt: hoe XRP koers kan stijgen naar $13 of $22 in juni

Lars Diederiksen 2 hours ago

Premium Sponsors

Top Brands

Press Releases

  • Kyrgyzstan solidifies role as Central Asia’s leading...

    16 hours ago
  • RIPPLECOIN Mining upgrades free cloud mining, BTC, XRP...

    19 hours ago
  • How XRP, BTC and Dogecoin enthusiasts can easily make...

    19 hours ago
  • How to Make $10,000 a Day: XRP Enthusiasts Live the Dream...

    22 hours ago
  • ViaBTC Showcased Global Mining Leadership at Bitcoin...

    22 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.