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I personally like a challenge, so I would enjoy repairing relationships and getting things back on track. But if it seems insurmountable, you could cut and run. It's all about what you're willing to do.
You've got two choices to be honest, you either go above the CTO which I guess means the CEO and hope they actually take it seriously, or you make sure to record everything so none of that stuff gets pinned on you (including documented efforts to inform the CTO about the issues and any steps you might be taking to rectify it).
That's assuming you don't decide to cut and run.
Ptotection from liability #1. Don't just run. You will appear guilty and if the company is looking for a scapegoat you wull do just as well as anyone else would. It is not impossible to imagine that the one that was where you are now didn't feel as you do and just couldn't follow CEO CFO or anyother officer's dirrection regarding shady bussiness practices. KYOA
I’m currently in a similar boat with the executive I replaced. I told myself when I took the job I’d give them a couple years to try to fix it but was flat out lied to about how bad it was/having to start over and build up multiple departments from scratch. 2 years in now and I’m about to leave because I’m not taking the blame for COO and CEOs non action. All documented of course.