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.