The new CEO of FTX faces his worst nightmare

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information,” said FTX's new CEO John J Ray III.

A veteran bankruptcy pro, Ray has overseen some of the biggest bankruptcies and liquidations of firms like Enron.

The filings reveal that ex-CEO Sam Bankman-Fried had lax control over billions of dollars in cash and cryptocurrency. Employees were bought houses in the Bahamas using corporate funds and no internal communication.

In fact, during his tenure, Bankman-Fried allegedly communicated with his employees via auto-deleting messages.

The Securities and Exchange Commission and the Justice Department are currently investigating FTX.