Following current disclosure that FTX debtors and chapter directors situated $5.5 billion in liquid belongings, the brand new FTX CEO John J. Ray III mentioned the enterprise in his first interview since taking up the trade’s restructuring course of. Ray detailed through the interview that he’s open to the potential for reviving the now-defunct digital forex buying and selling platform.
FTX CEO John J. Ray III Explores Reviving the Fallen Crypto Trade
The brand new FTX CEO and chief restructuring officer (CRO), John J. Ray III, carried out his first interview because the firm filed for chapter safety on Nov. 11, 2022. Ray informed the Wall Road Journal (WSJ) that there could also be worth in restarting the crypto trade and burdened that “the whole lot is on the desk.” Ray’s interview adopted a current press launch and presentation by the chapter crew and FTX debtors, which had been revealed to tell the committee of unsecured collectors.
“If there’s a path ahead on [rebooting FTX], then we is not going to solely discover that, we’ll do it,” Ray informed the publication.
The presentation given to the committee of unsecured collectors confirmed that $5.5 billion in what are known as “liquid belongings” have been found. Nevertheless, the definition of “liquid” because it applies to the stash of locked SOL and cache of FTX token (FTT) is debatable. Along with the $5.5 billion found, the chapter crew detailed that one other $4.5 billion may very well be obtained by promoting subsidiaries and advertising FTX’s actual property in The Bahamas. Ray stated that there are stakeholders the debtors are working with who “have recognized what they see as a viable enterprise.”
New FTX CEO Addresses Tensions with Former CEO Sam Bankman-Fried, Criticizes Inside Circle’s ‘Spending Spree’
Ray additionally talked concerning the former CEO, Sam Bankman-Fried (SBF), because it’s been reported that the brand new CEO of FTX has stored his distance from the disgraced FTX co-founder. “We don’t have to be dialoguing with him,” Ray informed the WSJ. “He hasn’t informed us something that I don’t already know.” Nevertheless, The WSJ acquired a response from SBF, who referred to as Ray’s commentary “stunning.”
“This can be a stunning and damning remark from somebody pretending to care about clients,” SBF informed the WSJ. Ray sees issues in another way than SBF and the chief restructuring officer even criticized the co-founder’s Excel steadiness sheet idea. “That is the issue,” Ray informed the WSJ interviewer. “He thinks the whole lot is one huge honey pot.
Ray disclosed that he had not seen something like FTX throughout his total profession of restructuring corporations. “They went on a spending spree,” Ray burdened. “Typically there have been no buy agreements, or the agreements weren’t signed,” the FTX CEO added. As soon as once more, SBF denied the claims Ray made concerning the co-founder pondering issues are akin to at least one huge honey pot.
“Mr. Ray continues to make false statements based mostly on nonexistent calculations,” SBF informed the WSJ in a textual content message. “If Mr. Ray had bothered to think twice about FTX US, he would seemingly have realized each that his interpretation is wholly inconsistent with chapter regulation, and in addition that even when one had been to subtract $250m from my steadiness sheet, FTX US would *nonetheless* have been solvent.”
SBF added:
Slightly, Mr. Ray sees the whole lot as one huge honey pot—one he needs to maintain.
Ray doesn’t see eye-to-eye with SBF in any respect and regardless of the FTX co-founder saying on numerous events that he’d wish to be useful to collectors, Ray believes that SBF is being deceptive, and inflicting extra hurt than good. Noting that SBF’s textual content message statements are false, Ray insisted that it’s “unlucky as a result of individuals are persevering with to be victims proper now.” The brand new FTX CEO added: “They’re victims of misinformation…It’s dangerous.”
FTX’s trade token, FTT, jumped in worth on information stemming from Ray and his perception that there could also be a chance of reviving the defunct buying and selling platform. FTT skyrocketed by 35%, reaching $2.48 per unit, after it was buying and selling for $1.71 per unit earlier than Ray’s interview was revealed.
What do you consider Ray’s first interview since beginning the FTX restructuring course of? Share your ideas within the feedback under.
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