Lack of controls worse than Enron: FTX’s new chief

Jessica SierNorth Asia correspondent

Updated Nov 18, 2022 – 11.36am, first published at 4.29am

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FTX suffered a “complete failure of corporate controls”, according to a damning bankruptcy report by new chief executive John J Ray III, who has revealed FTX funds were used to buy homes for employees and advisers alongside a raft of stunning mis-uses.

Mr Ray, who is noted for his involvement in the Enron investigation and was installed after FTX founder Sam Bankman-Fried resigned last week – reported on Friday the internal controls of the exchange that once boasted a $32 billion valuation was among the worst he’d ever seen.

Jessica Sier is the North Asia Correspondent for The Australian Financial Review. She is based in Tokyo, Japan. Jessica has previously written on technology, global capital markets and economics.