According to the liquidators, Sam Bankman-Fried (SBF) presented apparently very optimistic (if not erroneous) figures regarding the holdings of FTX. New CEO John Ray said there is still hope to see the servers restart even though the crypto holdings of the platform’s customers are not fully covered at this time.
Here is some unexpected news: John Ray III, who took over FTX following its bankruptcy last November, is currently evaluating the possibility of reviving the FTX.com group.
Since the collapse of the stock exchange and the ousting of Sam Bankman-Fried, new FTX CEO John J. Ray III claims to have formed a task force studying the possibility of reviving the FTX.com group. According to him, while some individuals in key positions within the company may have committed wrongdoing, the fact remains that FTX has potential.
Before the company’s disastrous management came to light, FTX was the world’s second-largest cryptocurrency exchange, consistently enjoying status as a major competitor to giant Binance.
Despite FTX’s incredible mismanagement by its management team, many past clients have praised the technology of the platform itself. They would therefore have suggested to the new CEO that it would be “useful” to “restart” the exchange.
According to him, it is a question of knowing what would create the most value to best compensate the injured customers between this hypothesis and the sale of the subsidiary of the company. Following these statements, the price of FTT (the native crypto of the exchange) jumped by more than 40%.
Customer compensation as a decisive factor
John Ray III has expertise in reorganizing bankrupt businesses, as he himself was actively involved in paying off creditors of energy giant Enron Corp in the early 2000s.
The amount to be repaid at the time was in the 10 figures, as is the sum of the debts owed by FTX today, although the exact amount of the latter remains unknown at this time.
Based on the latest news, the funds raised so far by the exchange’s new leadership seem to shed some light on this bleak picture. Sure enough, earlier this month, FTX reported recovering over $5 billion in assets, far more than initially thought.
“Everything is on the table. (…) If there is a way forward about [de ce redémarrage de FTX], so we won’t just study it, we will. »
According to the new CEO of FTX, the decisive factor in this decision will be the compensation of the injured customers of the exchange. The question will therefore be to understand what generates the most financial value between the restart of FTX or the sale of the group and its subsidiaries.
Putting the accounts in order
However, it will be necessary to restore some order in the books of FTX. According to Mr. Ray, who says he has never seen this in his entire career, Sam Bankman-Fried and his colleagues sometimes failed to keep records of multimillion-dollar transactions, which the CEO also called “wild spending”. ”.
The current FTX team has been completely revamped and is currently combing through over 30TB of FTX-owned data in hopes of acquiring new assets. Just last week, they managed to get their hands on several wallets on the stock exchange.
The market reacted strongly to the announcement as FTT, the bankrupt exchange’s utility token, rose around 40% intraday.
After a series of incredible scandals revealed against FTX executives, can the crypto exchange platform recover without them? In any case, John Ray is very clear about Sam Bankman-Fried: SBF’s remarks have so far been “unnecessary and self-serving”, and he believes that he “doesn’t need to talk to him”.
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FTX platform could be relaunched according to new CEO
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