A new report filed in the ongoing autopsy of failed crypto exchange FTX reveals a litany of accusations against the company including executives who laughed about losing track of millions, a culture that cracked down on anyone who flagged potential problems, and a total disregard for normal accounting principles.
A group of FTX’s debtors, led by current CEO and chief restructuring officer John Ray III, filed a 39-page report with the U.S. Bankruptcy Court for the District of Delaware Sunday, detailing the demise of the exchange along with its trading arm, Alameda Research. They allege that FTX was completely controlled by a small cabal of executives, helmed by cofounder and former CEO Sam Bankman-Fried (SBF), who failed to institute proper accounting, security, and management practices, putting the firm’s “crypto assets and funds at risk from the outset.”
