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New FTX CEO Ray announces steps taken to staunch bleeding cashflow

13 Nov, 20222 min readRegulation
New FTX CEO Ray announces steps taken to staunch bleeding cashflow

The general counsel of FTX US, Ryne Miller, has released a statement from John J. Ray III, Chief Restructuring Officer and now-appointed CEO of FTX related to “unauthorized” access to FTX funds.

1/ Statement from John Ray, Chief Restructuring Officer and CEO of @FTX_Official — Consistent with their obligations as Chapter 11 Debtors-in-Possession, FTX US and FTX [dot] com continue to make every effort to secure all assets, wherever located.— Ryne Miller (@_Ryne_Miller) November 12, 2022

Ray’s statement highlights the continued efforts to ensure all assets are secured “wherever located” and explains that the team is now “in the process of removing trading and withdrawal functionality.”

Digital assets identified are to be found and moved to a “new cold wallet custodian.” Ray also confirms the reports on “unauthorized access to certain assets,” stating that this has indeed occurred.

2/ Among other things, we are in the process of removing trading and withdrawal functionality and moving as many digital assets as can be identified to a new cold wallet custodian. As widely reported, unauthorized access to certain assets has occurred.— Ryne Miller (@_Ryne_Miller) November 12, 2022

The next steps described in Ray’s statement detail that “an active fact review and mitigation exercise was initiated immediately in response.”

“We have been in contact with, and are coordinating with law enforcement and relevant regulators.”

Having previously handled the liquidation of Enron Corp — a historical and world-renowned bankruptcy event – Ray was called in to take over FTX on Friday evening.

Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.

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