The initial interim report to FTX’s independent directors, recently filed with the federal bankruptcy court by John J. Ray III, the C.E.O. of the debtor-in-possession, reads like a veritable roman à clef of corporate malfeasance, starring the scatterbrained fashion icon Sam Bankman-Fried and his inner circle of Gen Z lap dogs—namely Caroline Ellison, his MIT classmate and former girlfriend who has pleaded guilty to federal fraud charges, and Nishad Singh, FTX’s co-founder and former director of engineering who has also pleaded guilty to six counts of criminal behavior. When Ray took over FTX from S.B.F. in November, as FTX was filing for bankruptcy, his initial observation was that in his “40 years of legal and restructuring experience,” he had never seen “such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.” His new report unpacks this observation, often in chilling detail.