After FTX filed for bankruptcy last Friday (11), Sam Bankman-Fried stepped down as CEO of his own company. Now the problem is in the hands of John J. Ray III, an expert on failed businesses.
Companies like Enron, the Texan energy company that went bankrupt in 2001, and GT Advanced Technologies Inc, which went bankrupt in 2014, are on his resume.
The list goes on and on, and now FTX is on it too. As a highlight of Ray’s professionalism, he is already ignoring the nonsense that Sam Bankman-Fried pours out on social networks, trying to contain the impact of the former CEO’s statements.
“Statement by John Ray, Chief Restructuring Officer and CEO of FTX, regarding recent public statements by Mr. bankman-fried […] Mr. Bankman-Fried does not currently hold any positions with FTX, FTX US or Alameda Research and does not speak on their behalf.”
(3/3) Mr. Bankman-Fried has no running role @FTX_Official, FTX US or Alameda Research Ltd. and does not speak on their behalf.
— FTX (@FTX_Official) November 16, 2022
His speech can be linked to the latest SBF statements in which the former billionaire claims he is still trying to raise $8 billion to cover the FTX shortfall.
Customers’ money was used to buy homes
Regarding FTX’s so-called Chapter 11 bankruptcy filing, John Ray made controversial statements, stating that the brokerage would use its clients’ money to buy homes for its employees.
“In the Bahamas, I understand that corporate funds from the FTX Group were used to purchase homes and other personal items for employees and consultants.”
“I understand that for some of these transactions there appears to be no documentation as loans and that certain properties are registered in Bahamian registers in the personal names of these employees and consultants.”deposed John Ray, CEO of FTX.
That is, it is possible that such properties will soon be auctioned to assemble the brokerage’s money and then reimburse those injured by the mismanagement of Sam Bankman-Fried and other executives.
Never seen anything like it, says the new CEO of the bankruptcy expert
Then the 30 page document is seen by the live coins it also shows some of the accounts of Sam Bankman-Fried’s bankrupt companies. The data shocked even Ray, the current CEO of FTX and a bankruptcy expert for more than four decades.
“I have over 40 years of legal and restructuring experience […] Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as here.”
In addition to FTX and Alameda, there are 132 other companies associated with Sam Bankman-Fried, registered in different countries. That is, the bankruptcy process will be challenging for those involved who are trying to organize the recovery of funds.
Finally, former FTX clients should take some time to get some of their savings back. The good news, however, is that John Ray seems much more responsible than SBF for handling the next steps in this bankruptcy process.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
