Bankruptcy Expert: FTX Is Worse than Enron
The Bankruptcy expert who let Enron through bankruptcy says FTX is worse than anything he's seen in his career...
The chaos surrounding the collapse of FTX continues, and it is wild. We’ve gone from seemingly illegal loans all the way to imperial chinese harems, internal regulations worse than Enron (according to the guy who handled Enron's bankruptcy), and potentially the Bahamas forcing asset seizures that we all attributed to a hack.
It’s been another long week of crypto news.
Bankruptcy
Let’s start with the interim CEO brought on to guide FTX through bankruptcy filings, John Ray. “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information."
Ray had some absolute bombshells in filings this week. He said we shouldn’t trust or rely on audited financial statements, specifically saying FTX did not include customer liabilities in financial statements. He said FTX bought houses and personal items for their employees and advisors.
Ray said FTX’s current fair value holdings of non-stablecoin assets is $659,000. They were worth over $30B at one point.
Bahamas Asset Seizure
FTX filed this week in US bankruptcy court that they had evidence SBF was ordered to move funds into custody of the Bahamas. Allegedly funds are now held in FireBlocks under control of the Bahamian Government. It’s unclear what that could mean for individuals who are victims of this whole FTX episode.
As with everything FTX related, be skeptical until anything is proven true.