The person in charge of FTX now has bad news for former customers: after the business went bankrupt, many of you won’t get your money back.
John J. Ray III, who is in charge of FTX’s reorganization and was the only witness at a hearing before the House Financial Services Committee on Tuesday, said, “At the end of the day, we won’t be able to make up for all of the losses here.”
The new CEO of the now-defunct bitcoin exchange FTX has a lot of experience fixing big problems. We’re talking major Enron here. He said that none of those things are as bad as the crash of a company with millions of customers that was worth more than $30 billion a few months ago. All of this was clear yesterday, when the bankruptcy process began. David Gura from NPR has the story.
GURA, DAVID, BYLINE: So, there are a lot of things about John J. Ray III that we don’t know. He was in charge of leading FTX through one of the biggest and most complicated bankruptcies in history. He keeps to himself. His site is not there. And it’s hard to find a picture of him or a recording of him talking, which is something. Sam Bankman-Fried, the man who came before him, seemed to be everywhere. We do know that Ray went to work for the first time on November 11, just after 4:30 a.m. Bankman-Fried decided to hand over control of his crypto empire after talking to his lawyers and his father.