The largest controversy in the cryptocurrency industry involves celebrities, sports stars, intrigue in the Caribbean, and a corporate riddle. Specifically, how exactly did a company that was valued at $32 billion go bankrupt virtually overnight? When viewed with the benefit of hindsight, Sam Bankman-FTX Fried’s enterprise raised a multitude of red flags. However, its demise has been remarkable, even to those who have lived through the worst collapses in the history of corporations.
John J. Ray, the new CEO of FTX, stated in a petition with the bankruptcy court that he had “never in my career witnessed such a catastrophic collapse of corporate controls.” This is quite a comment coming from the attorney who worked on the Enron bankruptcy twenty years ago.
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