FTX, a crypto platform founded by Sam Bankman-Fried, has been struggling since November 2022, causing other crypto companies such as Celsius and Voyager to collapse. John J. Ray III took over operations and promised to guide the company through bankruptcy and maximize recoveries for stakeholders. Court documents revealed FTX’s blueprint for a strategic “management and monetization” plan designed to diminish market volatility risks and gear up for potential distributions to creditors.The company is now considering appointing Galaxy Digital Holdings, lead by billionaire Michael Novogratz, to oversee its extensive portfolio of digital tokens. FTX is petitioning court approval to ink an investment services contract with Galaxy Asset Management. This decision was taken after extensive consultations with the official committee of unsecured creditors, following a thorough vetting of several potential investment advisers.Ray uncovered “a complete failure of corporate controls”, uncovering multiple instances of poor record-keeping, unchecked loans totaling billions to Bankman-Fried and senior executives and discrepancy in the reported value of the firm’s crypto assets. Debts owed to customers totalled to around $8.7 billion, with recoveries so far amounting to approximately $7 billion.
| Information |
Details |
| Geography |
North America |
| Countries |
|
| Sentiment |
neutral |
| Relevance Score |
9 |
| People |
Sam Bankman-Fried, Michael Novogratz, John J. Ray III |
| Companies |
FTX, Galaxy Digital Holdings, Galaxy Asset Management, Celsius, Voyager, None |
| Currencies |
Bitcoin, Ethereum, FTX, Celsius, Voyager |
| Securities |
None |
