FTX Scandal: CEO Sam Bankman-Fried Had ‚No Business Experience‘ Says New CEO

• Sam Bankman-Fried, the former CEO of FTX Exchange Centralised Exchange, is currently charged with 13 crimes.
• John Ray III has taken charge since November and identified extensive financial and accounting deficiencies.
• SBF had ultimate control in all critical decisions despite having lack of experience running a business.

SBF Faces Charges

Sam Bankman-Fried, the former CEO of ftx exchange ftx exchange Centralised Exchange , is currently charged with a total of 13 crimes. In November, SBF signed over control as a multibillion-dollar bank run began, and John Ray III took charge.

FTX Group’s Controls Deficiencies

John has been working day and night to restore order in the face of a global firestorm that was allegedly started by SBF. According to Ray’s restructuring team, they have „identified extensive deficiencies in the FTX Group’s controls“ including a lack of suitable financial and accounting controls. Some 80,000 transactions were reportedly left as unprocessed accounting entries in catch-all QuickBooks accounts titled „Ask My Accountant,“ indicating that FTX’s bookkeeping had been neglected.

Ultimate Control With No Experience

Despite having very little experience, Ray underlined that co-founders sam bankman fried sam bankman fried Sam Bankman-Fried EntrepreneurInvestor and Gary Wang, together with former engineering director Nishad Sing, had the „ultimate voice in all critical decisions.“ The management and governance of the FTX Group were largely limited to Bankman-Fried, Singh, and Wang with Bankman-Fried viewed as having the final voice in all significant decisions. These three individuals had no experience in risk management or running a business but controlled nearly every significant aspect of the FTX Group.

Unprocessed Accounting Entries

More than 1 million customers are now wondering if they will ever be able to get their savings back due to an $8 billion balance sheet hole left by unprocessed accounting entries at FTX. Customer funds‘ future however is still unknown as Si Xiaopeng stated it would take weeks before there is clarity on this issue.


The saga between Sam Bankman Fried (SBF)and his companyFTX continues as investors wait patiently for answers regarding their funds‘ safety at this uncertain time. John Ray III has taken charge since November when SBF signed over control amid allegations that he caused a global firestorm due to his lack of experience running a business resulting in financial and accounting deficiencies leading to $8 billion balance sheet hole at FTX .