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John Ray, who took over as CEO of Crypto Exchange ftx, described some of the company's chaotic experiences after the company's bankruptcy.
Testifying in the ftx case in the US bankruptcy court for the Delaware district on February. 6, Ray said that he and other professionals had "thoroughly" investigated the activities of ftx, because of the company not having a physical office. The CEO of FTX appeared to oppose a motion to assign an independent reviewer to deal with the bankruptcy, Alleging that "unintended mistakes" could lead to the destruction of "hundreds of millions of dollars worth".
Ray said, when the FTX was acquired in November 2022, There was "not one list of anything" in connection with bank accounts, income, life or health insurance, causing an "enormous rush to the news." The FTX CEO said the same day he helped file a Chapter 11 bankruptcy petition, and there were multiple attempts to steal crypto, resulting in security experts and liquidators moving quickly to secure funds.
"Your normal petition of the first day is chaotic like sometimes - it's something I've never known," said Ray. 'These hacks were carried out most of the night [...] That was 48 hours of what I can only call pure hell."
The CEO of the FTX said he had no ties to ex-executives on the stock market, including Caroline Ellison, President and Chief Executive Officer of Alameda Research, Gary Wang, co-founder of FTX, and Sam Bankman-Fried, former CEO, or his parents, before they took control. According to Ray, anyone "in a controlling position" under bankman-fried no longer had the power to direct the shares of the FTX company.
Ray’s testimony came amid a motion from the Office of the U.S. Trustee arguing the court should appoint an independent examiner who would release a public report providing transparency into the bankruptcy proceedings. Juliet sarkessian, representative of the Office of the American Fiduciary, suggested that, Although Ray didn't have a relationship with Bankman-Fried until he became CEO, it was always in the public interest to appoint an examining officer.
Related: Justice Dept defends motion to bar SBF from accessing FTX, Alameda assets
FTX’s bankruptcy proceedings are ongoing as debtors and interested parties will make motions over the firm’s assets, investigate the company, and release information potentially affecting Bankman-Fried’s criminal case. The legal team representing FTX debtors requested the issuance of subpoenas for information and documents from Bankman-Fried’s immediate family on Feb. 1.
At the time of publication, Judge John Dorsey had not ruled on the motion for an examiner. This is a development story that can be updated.
