FTX Restructuring: New CEO John Ray III Announces Advising Firms
Beleaguered crypto exchange FTX’s new CEO John J. Ray III has announced consultant Alvarez & Marsal and law firm Sullivan and Cromwell as advisors for restructuring FTX. Ray said the Chapter 11 bankruptcy filing is an important step in developing plans to restructure the crypto exchange.
FTX CEO John Ray Reveals Advising Firms
Crypto exchange FTX, FTX US, and Alameda Research, along with 131 other FTX firms filed for Chapter 11 bankruptcy. Sam Bankman-Fried resigned and named restructuring veteran John J. Ray III as the new CEO.
In an internal Slack message to employees, John Ray disclosed that Alvarez & Marsal and Sullivan and Cromwell are advising FTX in its restructuring plan, reported Reuters. Sullivan and Cromwell earlier advised FTX US on the Chapter 11 acquisition of Voyager Digital.
John J. Ray III has extensive experience as a chief restructuring officer and plan administrator in notable bankruptcy cases and situations such as Overseas Shipholding Group Inc., Nortel Networks Inc., and Enron.
Meanwhile, Richard Handler, CEO of Jefferies Financial Group, in a tweet showcased screenshots of his emails to Sam Bankman-Fried in July and September to warn about FTX’s financial crunch and propose restructuring. However, SBF failed to meet Richard Handler.
Former US Treasury Secretary Lawrence Summers said the collapse of the cryptocurrency exchange of Sam Bankman-Fried is like the Enron scandal. John J. Ray III was a lawyer at the time of Enron’s liquidation.
FTX Token (FTT) price is currently trading at $2.71, down over 30% in the last 24 hours. The FTT price has fallen over 90% in just a week.
Crypto Markets Crash Near?
The crypto market already under the FTX crisis pressure felt another shock after FTX filed for bankruptcy. The proposed acquisition by Binance and Justin Sun has failed. Recently, Justin Sun said that a bankruptcy filing by FTX will make institutional investors lose trust and confidence in the industry.
Bitcoin and Ethereum prices are currently trading at $16,834 and $1,257. The prices are currently moving sideways as the U.S. dollar index (DXY) continues to slide after the U.S. CPI data. However, FTX’s bankruptcy may likely have a long-running impact on the crypto market.
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