New FTX CEO Says It Would Take Several Months To Track Down Exchange Assets
FTX has a new CEO John Ray after all of its recent troubles, and he has come up with a new statement... According to him, it would take several months to locate and secure all the FTX assets after its collapse.
So far, the company has managed to secure around $1 billion of the FTX assets and transferred it to cold wallets. This was revealed by John Ray in his most recent testimony in front of the financial services committee.
He also said that this is an ongoing process and to fully complete it, the company would take several weeks to even months.
Lack Of Internal Accounting
After the departure of Bankman-Fried last month, Ray has become the new CEO of the company. Earlier, Ray worked at Enron and managed to bring the company out of bankruptcy.
So on that front, it seems that Ray has some experience handling bankrupt companies like the FTX. This means that there is still hope that FTX could turn around and dig itself out of the hole.
If we look at how it all started, we will need to look at the last month. FTX, which was once a well-known name in the Crypto industry, eventually filed for bankruptcy protection. As a result of this move, the customers were left with no way to withdraw the funds.
The US authorities believe that Bankman-Fried has been making this scheme for several years to defraud crypto investors. This was actually revealed in a recent SEC complaint which makes things even more complicated.
Gary Gensler (SEC Chair) has alleged that Sam built all of this on deception by giving the assumption that FTX was a secure place for storing and trading crypto.
According to experts, the problem behind taking this long to secure assets has to do with the company's lack of internal accounting.
The new CEO said that he had never seen a case of such poor record keeping in his life. He also said that FTX had no internal controls, which made things even more difficult.