John Ray, the newly appointed CEO of FTX, has criticized the management of the bankrupt cryptocurrency exchange.
The company declared bankruptcy last week in the US, and Mr. Ray stated in court documents that he had never "seen such a catastrophic collapse of corporate controls."
Sam Bankman-replacement, Fried's Mr. Ray, also criticized the "total lack of reliable financial information."
In the meantime, Mr. Bankman-Fried admitted to regretting declaring bankruptcy to the Vox news website.
He expressed his disgust for financial regulators and claimed that the choice had largely removed financial matters from his control.
In his 40-year career, which has included managing the bankruptcy of US energy colossus Enron, Mr. Ray claimed that what he had discovered since taking over was "unprecedented."
Mr. Ray also criticized what he called the "erratic and deceptive" public assertions made by his predecessor in documents submitted for the opening day of bankruptcy proceedings before the Bankruptcy Court for the District of Delaware.
Mr. Ray claimed that FTX did not retain centralized control of its cash and that control was concentrated in the hands of a "very small group of inexperienced, naive, and potentially corrupted persons."
The "lack of an exact list of bank accounts and account signatories," he claimed, was the case.
He claimed that "just a fraction of the digital assets" stored by the company could currently be found.
"I understand that corporate monies of the FTX Group were utilized in the Bahamas to acquire mansions and other personal assets for workers and advisors," Mr. Ray further states in his declaration to the court.
The new CEO did note that "a core team of loyal employees" had remained committed to their positions throughout the bankruptcy.
Additionally, he mentioned that some of the victims of these incidents "are present and former employees and executives, whose personal assets and reputations have suffered."
According to estimates, FTX owes money to more than a million individuals and businesses.
Although many analysts caution that it may only be a small portion of what they invested in the company, it is unknown how much people with cash in the exchange would receive back at the conclusion of bankruptcy proceedings.
In a recent tweet, Mr. Bankman-Fried stated, "My objective, my one goal, is to do right by customers."
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