FTX new boss John Ray to rescue crypto firm


Image Source: Crypto Slate

Failed cryptocurrency exchange John Ray, the new CEO of FTX, is looking into whether or not the platform can be brought back to life.

He told the Wall Street Journal (WSJ) that he has set up a group to look into restarting FTX.com so that people who lost money can “recover more value.”

A year ago, FTX was worth $32bn (£26bn), but in November, it filed for bankruptcy.

Estimates say that $8 billion worth of money went missing.

Sam Bankman-Fried, the exchange’s founder and former CEO, is accused of scamming customers and investors to pay off debts from his crypto-focused hedge fund, Alameda Research.

He has said that he is not guilty of fraud.

But the future of customer funds still needs to be clarified.

‘Complete failure’

The WSJ report says that Mr. Ray is thinking about bringing the platform back to life instead of just selling its assets or closing it down.

The company waited to answer when the BBC asked FTX for a comment.

Mr. Ray had previously criticized how the failed crypto exchange was run, saying that he had never “seen such a complete failure of corporate controls.”

He said that what he had found since taking over FTX was “unprecedented” in his 40-year career, which included overseeing the bankruptcy of US energy giant Enron.

“Crypto winter”

One of the most important things that happened during what has been called a “crypto winter” for businesses was the collapse of the exchange.

The first big surprise came in May of last year when two tokens owned by Terraform Labs, Terra Luna and TerraUSD, went down in value.

Many other cryptocurrencies, including Bitcoin, lost $400 billion (£318 billion) in value because of the drop.

In September, Interpol sent a red notice to law enforcement agencies asking them to arrest Do Kwon, who started Terra.

In November, one of the biggest exchanges, FTX, used by millions of people to get into the crypto market, went out of business. This made the crypto market even more unstable.

It was thought to be one of the most trustworthy platforms, but it went bankrupt in just a few days after it became clear that its finances were unstable.

In his last interview before being arrested, FTX founder Mr. Bankman-Fried told the BBC, “I don’t think I tried to do anything wrong.”

In December, the 30-year-old was sent back to the US from the Bahamas, where FTX was based. He was charged with stealing money from customers and investors, but he pleaded not guilty in court. As a result, he was let go on $250 million bail and denied the accusations.

$415 million was stolen from FTX

cryptocurrency exchange failed FTX says that hackers have stolen about $415 million (£338 million) worth of cryptocurrency.

Since the company filed for bankruptcy, hackers stole about $323 million from its international exchange and $90 million from its US platform, says the CEO of FTX.

Sam Bankman-Fried, who helped start FTX, is accused of stealing billions of dollars from FTX users to pay off debts at his other company, Alameda Research.

Mr. Bankman-Fried has said that he is not guilty of fraud.

The company also said it had found major problems at both its international and US exchanges.

But it did not say how much the total liabilities would be.

In a press conference last month, federal prosecutors said that “intentional fraud” caused the meltdown of the platform where people could buy and sell digital tokens.

Prosecutors said that Mr. Bankman-Fried took money from FTX customers without their permission and used it to pay off debts at his other company, Alameda, and make other investments.

They told the public about eight criminal charges, such as wire fraud, money laundering, and violations of campaign finance laws. People in charge of the financial world also sued Mr. Bankman-Fried. He has said he is not guilty.

Later on Tuesday, Mr. Bankman-Fried said again, “FTX US has always been solvent.”

FTX gets back more than $5bn in assets

A lawyer for the company says that the collapsed cryptocurrency exchange FTX has found assets worth more than $5bn (£4.1bn).

On Wednesday, a US bankruptcy court was told that it is still unclear how much money customers have lost.

Prosecutors have accused Sam Bankman-Fried, who used to be the CEO of FTX, of running an “epic” scam that may have cost billions of dollars to investors, customers, and lenders.

Investors say that Mr. Bankman-Fried lied to them, but he has said he is not guilty.

Mr. Dietderich said that the seized assets by the Securities Commission of the Bahamas, where FTX was based and where Mr. Bankman-Fried was living when he was arrested, are not part of the recovered funds.

Most customers and investors who stand to lose money because of FTX have yet to be named in the hearings.

But court documents mentioned American football player Tom Brady, his ex-wife Gisele Bündchen, and New England Patriots owner Robert Kraft.

In December, the 30-year-old was caught in the Bahamas and sent to the US. He is said to have pulled off “one of the biggest financial scams in US history.”

The company FTX, worth $32bn a year ago, filed for bankruptcy on November 11. It is thought that $8 billion of the customers’ money went missing.

Read Also: FTX: SBF pleads not guilty to fraud charges 

US federal prosecutors say that Mr. Bankman-Fried stole money from FTX customers and used it to pay debts at his cryptocurrency trading company Alameda Research and make other investments.

In December, prosecutors announced eight criminal charges, including wire fraud, money laundering, and violations of campaign finance laws. Mr. Bankman-Fried has also been sued by people who keep an eye on the financial world.

Gary Wang, who helped start FTX, and Caroline Ellison, who used to run Alameda, have also been accused of playing a role in the company’s failure. The police said that both of them were helping with the investigation.

Opinions expressed by Atlanta Wire contributors are their own.


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