The curly-haired prodigy's place at FTX has been taken by John J. Ray III, a renowned bankruptcy specialist who works to recover funds from failing corporations. He was chief executive of Enron and oversaw its liquidation, and has also worked on the bankruptcies of Nortel, Residential Capital and Overseas Shipholding. Ray stated that "I have never in my career seen such a complete failure of corporate control and such a complete lack of reliable financial information as I have seen at FTX."
The Verge journalists quote a list of five points that Ray will develop in his appearance before the House Financial Services Committee, where he has been called as a witness.
The collapse of FTX a month ago now appears to be a natural occurrence: Bankman-Fried and his partners were using client deposits on FTX to support their other business, the trading firm Alameda Research, and in a competitor-induced crisis it appeared that FTX did not have sufficient funds to pay clients.
Bankman-Fried was due to give evidence at a congressional hearing this week and has been giving non-stop interviews to journalists in recent weeks.