FTX filed its petition for Chapter 11 bankruptcy protection on Friday, November 11. The CEO Sam Bankman Fried made an announcement regarding the same after Binance called off the deal.
The former CEO Sam Bankman Freed apparently addressed once to be the future Warren Buffet or JP Morgan of crypto and others of FTX have now are being kept away from the funds of their own FTX.
He himself had said about the situation with SBF that he and his inner circle won’t seek money anymore from the company which is true as the wording specified that nobody with “Familial ties with SBF or the recently fired executives shall receive payment from FTX.
Before filing for Chapter 11 protection Bankman Fried put it on Twitter that “user whole comes first followed by investors old and new, and then the employees who invested their careers and weren’t involved in the fall” he stated on 10th November a day before filing. He was still a CEO while he had not announced the company’s bankruptcy filing.
At first, the Bahamians denied that they ordered their employees to move hundreds of millions worth of funds in unauthorized transactions which they later confirmed on the same day of filing Chapter 11 protection, November 11.
Later it was further confirmed that no amount shall be paid to the terminated co-founder, CEO, chief officer, chief engineer, and Alameda Research CEO Gary Wang, Nishad Singh, and Caroline Ellison on Friday, November 18 as per Wall street journal report.
New CEO, John J Ray comes in to clean FTX Mess
The new FTX CEO John J Ray III who commands $1300 per hour was hired through the company named Owl Hill Advisory and it logged $20000 worth of billable hours hired even before the bankruptcy filing. Further, the RLKS Executive Solutions from where John Ray has been hired shall receive $975 per hour.
FTX evidently excluded the former CEO and others from the motion where it was decided that the employees shall be paid whatever they have worked for and that they shall also be funded throughout the proceedings.
Despite the fact that the debtors in this case FTX have to take permission to pay its employees from the court as the funds are supposed to be frozen, John also confirms that it is becoming difficult to locate a few employees.
Binance a former FTX investor first announced that it would liquidate $580 million FTT because of the leaked balance sheet of FTX’s sister concern as Alameda’s $14 billion balance sheet included $5 billion FTT. This further resulted in a fall in FTT’s price and users rushed to sell their tokens and pulled funds out of the FTX platform.
FTX further suspended its practice of paying employees through cryptocurrency, token stock options, or equity-based compensation along with its filing.
All this mismanagement of funds, finances, and no professional attitude led to the fall of FTX from the crypto market claims new CEO John.
