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Globe says SEC hears FTX run by amateur bitcoin bros

2022-11-18 07:47 ET - In the News

See In the News (C-*SEC) U S Securities and Exchange Commission

The Globe and Mail reports in its Friday edition that John Ray, the restructuring expert who has taken over as head of beleaguered cryptocurrency exchange FTX Ltd., says he has never in his 40-year career seen "such a complete failure of corporate controls and such a complete absence of trustworthy financial information." The Globe's Temur Durrani and David Milstead write that Mr. Ray, who has cleaned up multiple failures in his time from Enron to Nortel, asserted Thursday in an FTX filing in U.S. bankruptcy court, "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." Major investors appeared unaware of deficient in financial controls and disclosure. That includes the Ontario Teachers' Pension Plan, which put $95-million (U.S.) into Bahamas-based FTX over two rounds of investment in 2021 and 2022. Teachers', while claiming "robust due diligence on all private investments," will write down its investment in FTX to zero by year-end. In a statement, Teachers' claims it does "robust due diligence on all private investments."

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