Jaidan Odorisi
Professor Massel
Accounting 201
28 November 2022
Article Summary #5
The company FTX is receiving backlash for their poor professionalism and accuracy
within the financial departments. Newly appointed CEO, John Ray III, “scorched” Sam
Bankman-Fried for providing untrustworthy information and data in regards to the company’s
finances. Ray stated that most of the company’s departments have been inadequately trained and
running poorly. The Human Resources, Cybersecurity, Accounting, and Auditing departments
being mostly at fault. He also disclosed that he lacked any confidence in the accuracy of the
Balance Sheet statements of Alameda, FTX, or their subsidiaries. As a result of this extremely
poorly run company, Ray filed with the U.S. Bankruptcy Court for the District of Delaware. He
even stated, “in his 40 years of legal and restructuring experience he had never seen such a
complete failure of corporate controls and such a complete absence of trustworthy financial
information as occurred here.” This issue paints a remarkably clear picture of what poor control
over all aspects of a company can lead to.
