BlockFi Investor Conference Presentation Deck
FTX Files Chapter 11
Case 22-11068-JTD Doc 24 Filed 11/17/22 Page 1 of 30
IN THE UNITED STATES BANKRUPTCY COURT
FOR THE DISTRICT OF DELAWARE
Chapter 1
Case No. 22-11068 (FTD)
(Joint Administration
Base:
FTX TRADING LTD, eta,¹
Debtors
DECLARATION OF JOHN J. RAY IN SUP
CHAPTER 1 PETITIONS AND FIRST DAY F
1,Joh 3. Ray, hereby declare under penalty of
S.
I am the Chief Executive Officer of the
debrors-in-possession collectively, the "Debtors"), having a
moming hours of November 11, 2022. Ia administering
from wary offices in the United Suncs.
2.
My Best official act in these so
the Debtors and the commencement of the above y
Since my appointment
3.
professionals at Alvarez & Marsal, Sulliva
à confidential cybersecurity firm, 10 secy
reliable books and records, to assemb
respond to numerous inquiries from
The last for its of FTX Toy
Actories in these Chapsy
identification numbers in
website of the chess p
424437-65
3808842
(c)
U.S. Commodity Futures Trading Commissions CFIC, the LLS Antarney's Office for the
Souther District of New York, the U.S. Securities and Exchange Commission (SEC), and the
US Congress, among others
(6)
4. I have over 40 years of legal and restructuring experience. I have been the
Chid Restructuring Office or Chief Executive Officer in several of the largest corporate failures
in history. Thave supervised situations involving allegations of criminal activity and
mascEnron). I have supervised situations involving noved financial structures (Eston
and Residential Capical) and cross-border asset recovery and maxination (Nortel and Overseas
Shipholding). Nearly every situation in which I have been involved has been characterized by
defects of some sort in internal controls, regulatory compliance, buman resources and systems
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.
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
Case 22-11068-JTD Doc 24 Filed 11/17/22
6.
jaj
5
Page 2 of 30
unprecedented.
These Chapter 11 Cates have five core objectives:
Implementation of Controls: the implementation of accounting, audit,
ass management, cybersecurity, buman resources, risk management, das
protection and other systems that did not exist, or did not exist to an
appropriate degree, prior to my appointment,
Asset Protection & Revery: the location and security of property of
the estate, autantial portion of which may be missing or stolen
Transparency and Investigation: the pending comprehensive,
Bransparent and deliberate investigation into claims against Mr. Samuel
Bank Fried, the other co-founders of the Debtors and third parties, in
W
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