The new CEO of FTX exchange, John J. Ray III says that there is a possibility of either selling or restructuring the collapsed trading outfit. Ray stated this while FTX executives were preparing to appear before a United States bankruptcy court.
The new CEO shared his opinion as FTX launches a strategic evaluation of the firm’s total assets across the globe in order to maximize recoverable values for its customers and stakeholders as part of the bankruptcy proceedings.
The result of the evaluation conducted revealed that the balance sheet statement of regulated subsidiaries of FTX that are located in and out of the United States still have solid balance sheets in addition to account management and franchises that are still very valuable.
Ray hinted that he has given an instruction to the team of debtors to ensure the preservation of franchise value as best as they can under these trying conditions while seeking patience from employees, customers, government stakeholders, and regulators.
FTX In the Wake of Its Collapse
While the new CEO of FTX is trying to fix the crisis in the firm, a recent document that was submitted to the court during the bankruptcy filing has revealed that the collapsed firm is in so much debt. The firm is owing a debt of $3.1 billion to its top 50 creditors with its biggest creditor being owed $226 million. The details of creditors including their names were, however, omitted from the document.
FTX discloses its top 50 creditors are owed $3.1 billion.
The largest creditor is owed $226 million.
All names were redacted. pic.twitter.com/JGeddvMB7w
— Tom Dunleavy (@dunleavy89) November 20, 2022
CEO of Ripple Labs, Bradley Kent Garlinhouse announced that his firm has intentions to buy a part of the defunct FTX.
Garlinghouse said Ripple is particularly interested in the assets of FTX that are used to serve institutional clients. According to the report, Garlinghouse claimed that Sam Bankman-Fried had contacted him days before the FTX sought bankruptcy protection in an effort to find investors to save the failing company.
The Co-founder of Ethereum, Vitalik Buterin recently shared his thoughts on the FTX crash and the lessons to be learned from one of the most unpredictably significant occurrences in the cryptocurrency sector in an interview with Bloomberg.
Buterin acknowledged that there has never been any question regarding shared networks’ dependability or the technology underlying the Bitcoin market. The problem in this instance, as in many others like it, is with people, not with computers.
