Sam Bankman-Fried (SBF) and the whole FTX team have been singled out in bankruptcy proceedings for a complete lack of corporate controls.

SBF and his executives have come under fire for fully losing control of their corporate activities in the most recent bankruptcy filings.

SBF is aggressively attempting to obstruct the entire bankruptcy process for the different firms that are under his company, according to FTX's bankruptcy attorneys. The new CEO and senior attorney claim that SBF is currently up against the executives and attorneys recruited to handle the bankruptcy process.

The attorneys have submitted an urgent petition to move the Chapter 15 bankruptcy case from the Bahamas to the Delaware bankruptcy court. The action is intended to guarantee that all bankruptcy cases in the US will be handled by a single court. Partner Adam Landis of Landis, Roth & Cobb said:

These Chapter 11 Cases are exceptional due to Mr. Bankman-notoriety, Fried's his unconventional management style, his constant and disruptive tweeting since the Petition Date, and the virtually total absence of reliable corporate records. In an effort to undermine these Chapter 11 Cases, expand the scope of the FTX DM proceeding in the Bahamas, and transfer assets from the Debtors to accounts in the Bahamas under the control of the Bahamian government, Mr. Bankman-Fried, the co-founder and controlling owner of all of the Debtors and of FTX DM, appears to be supporting the JPLs in their efforts.

SBF and his crew came under fire for having no corporate control over the business's affairs. The Chicago-based lawyer John J. Ray III, who was named the CEO of FTX following the collapse and is currently in charge of the bankruptcy files, criticised SBF for the manner the firm was handled. He composed;

The Enron bankruptcy veteran Ray, a corporate clean-up specialist, wrote: "Never in my experience have I seen such a complete collapse of corporate controls and such a complete absence of trustworthy financial information as occurred here. This position is unprecedented, with weakened system integrity, inadequate regulatory supervision abroad, and the concentration of power in a small number of untrained, naive, and possibly compromised people.

The majority of FTX's books were not audited, Ray stated in the most recent bitcoin news. Consequently, it's possible that the data in the company's books is unreliable. He clarified that the former CEO no longer represents the company and continued by saying that SBF is actively attempting to disrupt the bankruptcy process.

The hedge fund lent Bankman-Fried $1 billion personally, $2.3 billion to Paper Bird Inc., $543 million to co-founder Nishad Singh, and $55 million to CEO Ryan Salame, according to information from Alameda Research's balance sheet.