John Ray III Takes Over as CEO of Bankruptcy Filed FTX
- John J. Ray III is registered for insider trading, according to a report from SEC.
- The once-dominant crypto exchange has fallen apart in the span of a week.
Due to a severe lack of funds, cryptocurrency exchange FTX announced on Friday morning that it has filed for bankruptcy protection under Chapter 11. The previously $32 billion exchange suddenly collapsed due to a liquidity issue, and the company announced the resignation of former CEO and billionaire Sam Bankman-Fried.
John Ray III has taken over as CEO of the financially troubled exchange and will work with other “independent professionals” in the process.
In a statement, Ray claimed,
“The FTX Group has valuable assets that can only be effectively administered in an organized, joint process. I want to ensure every employee, customer, creditor, contract party, stockholder, investor, governmental authority and other stakeholder that we are going to conduct this effort with diligence, thoroughness and transparency.”
John J. Ray III is registered for insider trading, according to a report from the US Securities and Exchange Commission. Indictments against John J. Ray III have been filed due to his failure to make required financial declarations while serving in authoritative roles. While in positions requiring financial declarations, the new FTX CEO was active in trading equities belonging to three different firms, as noted in the report.
Ray led the campaign at Enron to return almost $20 billion to investors who had been duped. Additionally, he developed a reputation for opposing Wall Street and its interests.
Binance signed a letter of intent on Tuesday to purchase its struggling competitor, FTX, in what seemed to be a possible rescue of the embattled exchange, which was facing a liquidity limitation. However, once Binance conducted its investigation into FTX, the idea fell through around 24 hours later. The once-dominant crypto exchange has fallen apart in the span of a week.
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