John J Ray III earned $690K in two months as CEO at FTX. Although this may seem like a great deal for most people, it is his worst nightmare.
John Ray III, the new CEO of FTX appeared in court before the United States Bankruptcy Court of the District of Delaware. He shared his actions as CEO of the now-defunct cryptocurrency exchange. He shared the difficulties he had to overcome after assuming the CEO role.
Ray claims that he has experienced chaotic experiences like none he had in his previous roles, such as the bankruptcy proceedings at Enron and other large corporations. He had to deal with theft on his first day as interim chief executive. $650 Million Unauthorized transfers from FTX wallets
“I experienced chaos from the first day of my job. One fund-tracking specialist described the wallets within the AWS system like a needle in a haystack. “Those first 48 hours were hell.”
The FTX Liquidators lack expertise
Ray pointed out that the liquidators of the firm lack sufficient experience in crypto assets to solve the problems within FTX. The liquidators did not understand how DeFi protocols like Aave work and this led to the liquidation 4 Wrapped Bitcoin worth approximately $90,000.450.
Arkhan’s analysts explained in a few words what had happened:
The wallet 0x712 was used by liquidators to take assets from a DeFi borrow position @aaveaave.
Instead of paying the debt back to close the position, liquidators removed all collateral and placed the position at risk of liquidation. pic.twitter.com/rcpkBQ5bYo
— Arkham (@ArkhamIntel) January 12, 2023
FTX had no corporate controls, making it difficult to track the company’s money. Insiders were also able to freely transfer company assets without accountability. Ray stressed that the founders could easily make $500 million without being detected. Literally, one founder could walk into the environment and take half a million dollars from wallets. He said that there will be no accounting.
John Ray doesn’t want an independent examiner
John Ray requested that the judge who was in charge of the case did not interfere with the investigation he had been carrying out for the past four month, because the appointment of an independent examiner would have a negative impact on all his work.
James Bromley, FTX’s lawyer, argued that the existence of a new independent inspector would compromise the security of all that has been done and all that will be done.
Judge John Doresey is yet to comment on his decision regarding the appointment of an independent examiner. The majority of states support the appointment.