In the early 2000s, Mr. Ray oversaw the unwinding of Enron, the energy trading firm that collapsed in an accounting scandal. At the hearing, he called the perpetrators of Enron’s crimes “highly sophisticated,” whereas FTX executives appeared to have engaged in “really just old-fashioned embezzlement,” he said.“Even with most failed companies, we have a fair road map of what happened,” Mr. Ray said in his testimony. “We’re dealing with a literal paperless bankruptcy. It makes it difficult to track.”The S.E.C., in its complaint, amplified those concerns and warnings. The complaint said that from the beginning, “FTX had poor controls and fundamentally deficient risk management procedures.” The S.E.C. …
