Following FTX’s collapse and its connection to the multi-billion dollar financial issues, former CEO Sam Bankman-Fried has admitted his biggest mistake was transferring control of FTX to new CEO John J. Ray III before bankruptcy proceedings. This revelation came in court testimony, and it aligns with official bankruptcy filings which also show that Bankman-Fried is responsible for $3.1 billion owed to creditors after the company’s collapse. The admission follows his resignation from FTX after a wave of scrutiny and investigations into the firm’s operations. John J. Ray III, known for managing the Enron bankruptcy, was appointed to oversee the FTX proceedings, highlighting the financial turmoil and lack of corporate control that contributed to FTX’s downfall. Ray’s expertise in handling such complex situations is crucial as he navigates FTX’s multi-billion dollar debts and works to stabilize its aftermath. This has led to a greater transparency about FTX’s debts, which currently stand at $3.1 billion according to court filings. The collapse has triggered significant market reactions, with Bitcoin hitting a two-year low and Ethereum experiencing losses in the crypto market. FTX’s token FTT was also removed from trading platforms after its value plummeted, further highlighting the scale of FTX’s collapse. The impact of this event extends beyond cryptocurrency, impacting institutional investors who have written off billions in investments. The fallout has spurred increased scrutiny of the crypto market and discussions around regulatory reforms aimed at promoting transparency and investor protection. Centralization is now being scrutinized more heavily as the industry moves towards decentralized solutions in response to FTX’s failure.