Classifieds

In another example of financial impropriety, FTX was discovered to have used corporate funds to buy homes in the Bahamas and other personal items in the names of employees and company advisors, according to new court documents.
In a 30-page bankruptcy declaration to the United States Bankruptcy Court for the District of Delaware (pdf), newly appointed FTX CEO John Ray III confirmed that a paucity of corporate controls for accounting purposes resulted in spending that was not “appropriate for a business enterprise.”
Ray, who had managed Enron’s bankruptcy proceedings and restructuring, noted that corporate housing arrangements are common, particularly for companies that are located in opulent areas. However, he stated in the documents that “certain real estate was recorded in the personal name of these employees and advisors” in an unusual arrangement....