New Chief Calls FTX’s Corporate Control a ‘Complete Failure’

John J. Ray III, the new chief executive of the collapsed cryptocurrency exchange FTX, said in a bankruptcy filing on Thursday that he had never seen “such a complete failure of corporate control” in his career working with distressed companies.

Mr. Ray helped manage Enron after its collapse in an accounting fraud scandal in 2001. “From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented,” he wrote in the filing.

FTX collapsed last week after a run on deposits exposed a deep financial hole in the business. Last Friday, the company filed for bankruptcy, and its chief executive, Sam Bankman-Fried, resigned.

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