Reveal The Secret Story of FTX’s Rise and Ruin Part 2
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Oct 4, 2025 Jonathan Jones, an investigative reporter for Reveal, narrates the fallout from the FTX bankruptcy, while John Ray, the appointed CEO, shares insights on recovery efforts and struggles. Bankruptcy expert Jonathan Lipson dissects legal conflicts and the need for an independent investigation. The discussion highlights how customers are being compensated in cash instead of crypto, raising questions about their rights. With high legal fees and unresolved claims, the complexities of cryptocurrency bankruptcy are showcased, revealing the harsh realities faced by creditors.
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Complete Failure Of Corporate Controls
- John Ray described FTX as a catastrophic failure of corporate controls and record keeping.
- He said the company lacked basic infrastructure expected of a multi-billion dollar corporation.
International Customers Confused By Legalese
- Lidia Favario, an Italian artist, struggled with English legalese and felt disenfranchised by the U.S. bankruptcy process.
- She argued her assets were cryptocurrency but had to navigate a foreign legal system to assert claims.
Law Firm's Prior Role Raised Conflict Concerns
- Critics pointed to Sullivan & Cromwell's prior work for FTX as a potential conflict if it ran the bankruptcy.
- The U.S. Trustee flagged incomplete disclosures and connections that warranted scrutiny.