Last Friday, Sam Bankman-Fried filed his resignation as CEO of FTX. The crypto exchange will now be led by a strong figure in American finance.
An experienced lawyer
Days after FTX filed for bankruptcy, the crypto exchange and associated entities now have a new boss. His name is John J. Ray III. He is a lawyer and is famous in the world of finance, in particular for his role in the restructuring of Eron. Eron was an American energy giant, founded in 1985, which fell into serious financial difficulties in the early 2000s. The company was later declared bankrupt. As a reminder, the Eron affair is still today one of the biggest financial scandals of the last 20 years in the United States. Shortly before its fall, the company was the 7e largest company in the country by market capitalization. It had a staff of 4,000.
Thanks to his efforts, John J. Ray III managed to recover up to $20 billion for investors. An amount that indicates he would certainly have no trouble with the case of the crypto exchange. It would have $9 billion in liabilities and $900 million in liquid assets before filing for bankruptcy.
Will he succeed in collecting assets from FTX stakeholders?
The new boss of the crypto business will also act as head of restructuring. A daunting task when you know that FTX is the basis of a nebulous structure of 130 entities along the crypto value chain.
“The immediate implementation of Chapter 11 is appropriate to give the FTX Group the opportunity to assess its situation and develop a process to maximize recoveries for stakeholders (…) FTX owns valuable assets that cannot be effectively administered only through an organized joint process. I want to assure every employee, customer, creditor, contractor, shareholder, investor, government authority and other stakeholders that we will conduct this effort with diligence, rigor and transparency.”he assured, according to comments reported by the crypto press.
Nicknamed ”The pitbull” by the American press, Ray has already withdrawn $477 million from the crypto exchange. He has announcement that FTX is currently working to remove the trading and withdrawal functionality. Furthermore, he is working to transfer as many assets as possible to a new cold wallet.
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