New FTX CEO details 'failure of corporate control'

STORY: A bankruptcy court filing on Thursday for collapsed crypto exchange FTX revealed the findings of new CEO John Ray who said there was a shocking lack of corporate control and oversight at the company.

Ray - who took over from disgraced founder Sam Bankman-Fried and previously oversaw the bankruptcy of Enron - said:

"Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here."

Ray goes on to say: "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."

Bankman-Fried did not immediately respond to a request for comment on the allegations contained in the filing.

In the highest-profile crypto blowup to date, FTX filed for protection in the United States last week after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal.

As the effects of the FTX collapse were felt across the globe, Singapore state investor Temasek Holdings, which had invested in FTX, also made reference to Bankman-Fried on Thursday in a statement, saying:

"It is apparent from this investment that perhaps our belief in the actions, judgment and leadership of Sam Bankman-Fried would appear to have been misplaced."

Temasek said it would write down the value of its entire investment of $275 million.

Other investors including Softbank's vision fund and Sequoia Capital have also written down their investments in the exchange to zero, as ripples from FTX's bankruptcy continue to be felt around the world.