The new chief executive officer of bankrupt crypto exchange FTX, John Ray, has floated the idea of reviving the exchange since taking over in November.
In an interview with The Wall Street Journal On January 19, Ray said he had set up a task force to explore the idea of relaunching FTX.com.
“Everything is on the table,” Ray told the Journal. “If there’s a way to move forward on this, we’ll not only find it, we’ll do it.”
Putting customers first
Ray said he was considering whether restructuring the company would restore value to clients.
Despite allegations of criminal misconduct against former CEO Sam Bankmanfried and other executives, Ray said customers appreciated FTX’s technology and believed it was worth a revival.
“There are stakeholders that we are working with that have identified what they see as a viable business,” Ray said.
Ray, was brought in to fix the mess at FTX, and has spent the past few months looking for assets within the company to fill his shortfall. That includes the $8 billion it owes in customer deposits.
In a company statement, FTX said it Received approximately $5.5 billion $1.7 billion in cash liquid assets, $3.5 billion in crypto assets, and $3 million in securities.
However, Ray says it could take months to trace the full amount because the exchange “doesn’t have any records”. Instead, the company used Quickbooks, a small accounting software, to run its accounts.
“We are making significant progress in our efforts to maximize recovery and it has taken a herculean investigative effort by our team to uncover this preliminary information,” Ray said in a statement. “
Bankman disagrees with Freud Ray.
However, ousted CEO Sam Bankmanfried, who was charged with fraud in December, has disputed the new management’s figures.
According to Bankman-Fried, FTX’s US platform is solvent, and a bankruptcy filing could have been avoided.
He wrote in his recent Substake Newsletterthat the clients would have been returned had he not been “forced” to declare bankruptcy.
“I believe that if FTX International had been given a few weeks, it could have potentially used its liquid assets and equity to raise enough financing to make the customers substantially whole.” Bankman Freud wrote.
Bankman Freud Pleaded not guilty. for the charges he is facing in the United States.
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