Since taking over John Ray as CEO of the bankrupt cryptocurrency exchange FTX in November, John Ray has raised the possibility of resurrecting the exchange.
A task force has been established, according to Ray, who stated as much in a Jan. 19 interview with The Wall Street Journal.
According to Ray, “anything is on the table.” “If there is a way ahead on that, we won’t just look into it; we’ll take it.”
Putting the needs of the consumer first, Ray stated that he was investigating whether resurrecting the business would increase value for the customers. Even though former CEO Sam Bankman-Fried and other executives have been accused of criminal activity, customers have praised FTX’s technology, according to Ray, and think it is worthwhile to revive.
Ray stated, “We’re dealing with stakeholders that have recognized what they see as a potential business.
Ray, who was hired to clean up the mess at FTX, has spent the past few months looking for resources within the organization to make up for its deficiencies. Included in this are the $8 billion in unpaid consumer deposits.
According to a statement from the firm, FTX has recovered over $5.5 billion in liquid assets, including $1.7 billion in cash, $3.5 billion in cryptocurrency, and $3 million in securities.
However, Ray claims that because the exchange “had no record keeping whatsoever,” finding the full amount could take months.
Instead, the business ran its affairs using Quickbooks, a simple accounting program. It has taken a Herculean investigative effort from our team to find this preliminary information, but we are making significant headway in our attempts to maximize recoveries, said Ray in a statement.
Bankman-Fried rejects Ray’s assertions. However, the data from the new administration have been contested by dismissed CEO Sam Bankman-Fried, who was charged with fraud in December.
Bankman-Fried asserts that the bankruptcy case could have been avoided because FTX’s U.S. platform remains solvent.
In his most recent Substack newsletter, he claimed that the clients would have been paid back if he hadn’t been “forced” to file for bankruptcy. “I think that FTX International could have used its liquid assets and stock to acquire enough funding to make consumers significantly whole had it been given a few weeks,” the author writes. Bankman-Fried wrote.
To the allegations he is up against in the United States, Bankman-Fried entered a not-guilty.