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A fixer assigned to work through the disaster that Sam Bankman-Fried left behind at his failed FTX crypto company says the crisis is because people in the company lacked experience – and were unsophisticated.
Bankman-Fried, was arrested this week in the Bahamas and is facing a list of eight charges including money laundering and fraud.
The Daily Mail reported the arrest of Bankman-Fried foiled plans for members of Congress to grill him on the situation.
John J. Ray III, who earlier led Enron through its own massive collapse, has been assigned to work through the new FTX crisis.
Ray said this week the problem came about because of the “‘inexperienced and unsophisticated” influences in the company that it imploded.
The company collapsed recently – following a $5 billion “spending binge” in the last year, and Ray said the demise could be blamed on the “absolute concentration of control in the hands of a very small group of grossly inexperienced and unsophisticated individuals.”
There was, for one thing, he said, “Literally no record keeping whatsoever.”
Workers exchange critical company information, including invoices, by a chat app, and used Quickbooks accounting software, which while it is a “nice tool,” according to Ray, it’s not for a multibillion dollar company.
