New CEO: FTX had no corporate controls; some assets missing or stolen

Nov. 17 (UPI) -- The new CEO of cryptocurrency exchange FTX said Thursday the company had a complete failure of corporate control.

John J. Ray III said in a bankruptcy filing it was the worst case he had ever seen, adding that a substantial portion of FTX assets may be "missing or stolen." He said that FTX Group had a complete absence of trustworthy financial information.

Ray also said he did not have confidence in the accuracy of financial records for FTX and sister company Alameda Research.

"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 in the bankruptcy filing.

Ray said the books were unaudited and produced while former CEO Sam Bankman-Fried was in control. He said FTX did not have adequate financial safeguards, accounting, cybersecurity, auditing teams or human resources.

FTX Group announced bankruptcy last Friday. Bankman-Fried resigned as the company collapsed.

The U.S. House Financial Services Committee said it will hold hearings in December investigating the FTX Group cryptocurrency exchange collapse.