John Jay Ray III took over FTX in the wee hours of November 11. Hours later, he filed for Chapter 11 in a Delaware court.
The new CEO filed his first-day declaration this morning. It’s incredible. David Gerard and I summarize it — this one is on David’s blog. [David Gerard]
- In his 40-year career, Ray, who oversaw the Enron liquidation, has never seen “such a complete failure of corporate controls.”
- Ray has divided SBF’s empire into four silos, but the accounting is all unreliable because he’s gotten the numbers from SBF.
- Ray and his team will have to create a balance sheet and financial statements from scratch using what records they have of cash transactions.
- FTX Digital Markets, the company’s Bahamas subsidiary, filed a for Chapter 15 in SDNY. Ray’s team is asking the court to move the Chapter 15 case to Delaware.
- Ray thinks the filing in SDNY was shenanigans by SBF and unnamed agents of the Bahamas government!
- SBF’s late night DMs with a Vox reporter, published the next day, make it looks like he was in on the plot.