17. April 2024

,” and “Review security work plan from Sygnia.” All of these tasks were billed for a total of 223.2 hours, with a corresponding fee of $290,160. The filing comes months after FTX filed for bankruptcy in February due to the criminal charges facing former CEO Sam Bankman-Fried. Bankman-Fried faces several charges of fraud and illegal political donations totaling over $1 million if convicted, which could result in more than 100 years of prison time. For now, it appears that Ray is taking the lead in restarting FTX’s operations, though the specifics and timeline of the reboot remain unclear. With a successful reboot, FTX could once again become a major player in the cryptocurrency trading space.

• FTX CEO John J. Ray III is considering restarting the exchange’s operations according to a new court filing.
• Ray reportedly worked 223.2 hours in April and billed $290,160 for his efforts to review material, comment on FTX’s restart, and review a security work plan from Sygnia.
• Former CEO Sam Bankman-Fried faces multiple charges related to fraud and illegal political donations if convicted, which could result in more than 100 years of prison time.

FTX Considering Reboot After Bankruptcy

Newly filed court documents suggest FTX CEO John J. Ray III is considering restarting the bankrupt exchange’s operations. In April, Ray appeared to take part in multiple activities centered on an FTX reboot, according to a monthly compensation report filed with the U.S. Bankruptcy Court for the District of Delaware. Those activities include descriptions like “Review 2.0 next steps summary from PWP (purchase with purchase),” “Review next steps and comment on FTX restart,” “Review and finalize 2.0 reboot of exchange material for distribution,” and “Review and comment on 2.0 bidder list,” among others. The report also indicates Ray spent an hour and a half reviewing a work plan “for exchange fortification” from cyber security firm Sygnia.

Background On Exchange Shutdown

FTX first shut down in November after its native asset collapsed and it was forced to halt customer withdrawals due to mismanagement by former CEO Sam Bankman-Fried who took over after the exchange declared bankruptcy.
In his initial filing on the company’s affairs, Ray said he has never seen a corporate enterprise as mismanaged as FTX stating: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here.”
In January, Wall Street Journal reported that Ray had set up a task force to find out if restarting the exchange could be better alternative than selling its assets.

Charges Against Bankman-Fried

Bankman-Fried faces a slew of charges for allegedly defrauding customers and mishandling billions of dollars worth of their funds as well as making illegal political donations. If convicted he could face more than 100 years in prison.

Final Thoughts

Investors should do their due diligence before making any high-risk investments in Bitcoin cryptocurrency or digital assets.

Disclaimer

Opinions expressed at The Daily Hodl are not investment advice.