FTX Bankruptcy: This is the Current Legacy of John Ray III

Ever since he took over the administration of FTX from Sam Bankman-Fried following the implosion of the cryptocurrency exchange, John Ray III has put a lot of effort into the restructuring and recovery of funds for the firm.

John Ray III Steps in as Savior

Last year, the FTX exchange and most of its subsidiaries faced some challenges that questioned their liquidity and eventually led to the filing for bankruptcy protection in the United States. Sam Bankman-Fried, the Chief Executive Officer (CEO) of the exchange at the time, resigned from his position in the firm, and bankruptcy expert John Ray III took over. 

Ray is recognized for his astute work in the area of fund recovery for failed organizations and this made him the most preferred candidate for the FTX situation. He immediately swung into action, overseeing the FTX Chapter 11 bankruptcy proceedings with his focus on helping customers recover their assets. 

As Bankman-Fried’s trial which is scheduled for the first week in October draws nearer, the FTX CEO has now intensified his efforts in the recovery of billions of dollars owned by FTX users. 

This moves which comes with evidence is in addition to the fact that the defunct crypto exchange had received court approval to sell its crypto holdings.

Highlight of the Recovery Mission

Notably, this week has been eventful for FTX and many entities who are linked to the exchange. On Monday, Bankman-Fried’s parents Allan Joseph Bankman and Barbara Fried were indicted through a lawsuit filed by FTX. They were both accused of fraudulently transferring and misappropriating funds that belongs to FTX customers. 

One of the beneficiaries of Bankman and Fried’s magnanimity was Stanford University where they are both Law Professors. As part of Ray’s fund recovery efforts, the tertiary institution has agreed to return the $5.5 million it received as cash gifts from the FTX Foundation. 

On Thursday, the exchange sued some former staff of Hong Kong-incorporated affiliate of FTX known as Salameda Ltd. The lawsuit was focused on the recovery of $153 million that was transferred to the company right before FTX faced implosion and eventually filed for bankruptcy protection. 

All of these and more have been achieved under the leadership of Ray III and he is still notably selling the idea of restarting the exchange.