FTX Would Be Reinvented By Its New Boss - Texas Today

Currency exchange that didn’t work The new CEO of FTX, John Ray, is looking into whether or not the platform can be made to work again.

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

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

Money worth about $8 billion is thought to have gone missing.

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

He has said that he hasn’t done anything wrong.

But it still needs to be clarified what will happen to customer funds.

‘Complete Failure’

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

When the BBC asked FTX for a comment, the company had to wait to answer.

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

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

“Crypto Winter”

The collapse of the exchange was one of the most important things for businesses to happen during what has been called a “crypto winter.”

The first big surprise happened in May of last year, when Terra Luna and TerraUSD, two tokens that Terraform Labs owned, lost value.

Due to the drop, the value of many other cryptocurrencies, including Bitcoin, fell by $400 billion (£318 billion).

Interpol sent a red notice to police agencies in September, asking them to arrest Do Kwon, who started Terra.

One of the biggest exchanges, FTX, which millions of people used to get into the cryptocurrency market, closed in November. The crypto market became even more unstable as a result.

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

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

In December, the 30-year-old was sent back to the United States from the Bahamas, where FTX was based. He was accused of taking money from customers and investors, but he said he wasn’t guilty in court. So, he was set free on a bail of $250 million, and he denied the accusations…Read more

Source — Texas Today