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FTX Update: New CEO's hourly wage is $1,300, U.S. House of Representatives requests FTX to submit bankruptcy details

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FTX Update: New CEO

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FTX's New CEO's Hourly Wage Is $1,300

Documents from the bankruptcy court in Delaware, USA, reveal that the new CEO and Chief Restructuring Officer of FTX, John J. Ray III, has an hourly wage of $1,300. The documents state, "Mr. John J. Ray III's services are retained pursuant to an agreement between Owl Hill Advisory, LLC and the debtors (CEO Agreement)."

According to the CEO Agreement, Owl Hill will provide Ray's services as the CEO of the debtors, while Mr. Ray will remain an employee of Owl Hill. As per the CEO Agreement, the debtors will pay the current hourly rate of $1,300.

Creditors May Wait for Decades for Compensation

Cointelegraph reported that Stephen Earel, a partner at Co Cordis in Australia and a bankruptcy lawyer, stated that the process of liquidating FTX, "realizing" crypto assets, and determining how to distribute the funds will be a massive task. He mentioned that this process will also be impacted by the complexities of cross-border insolvency issues and jurisdictional challenges, potentially taking years or even decades.

The CEO of Binance Australia noted that considering the time it will take to recover funds, the costs could be significant, and pointed out that this means more legal and administrative expenses that will affect customer returns.

US House of Representatives Requests Bankruptcy Details from FTX

According to a report by Bloomberg, Raja Krishnamoorthi, head of the House subcommittee on Economic and Consumer Policy, wrote to FTX's former CEO Sam Bankman-Fried (SBF) and the new CEO and Chief Restructuring Officer, John J. Ray III, requesting detailed information about FTX's bankruptcy situation.

The committee requested information on explanations for FTX's liquidity issues, how problems with its Bahamian parent company affect its U.S. operations, and details on how customer funds were utilized. FTX was asked to provide the requested information and documents by December 1.

FTX Advises Exchanges to Freeze and Return Hacked Funds

FTX issued an official announcement stating, "Exchanges should be aware that some funds unlawfully transferred from FTX Global and related debtors on November 11, 2022, are currently being transferred through intermediary wallets to them, and other exchanges should take all measures to ensure that these funds are returned to FTX as bankruptcy assets."

FTX Owes Nearly $31 Billion to Top 50 Creditors

According to a report by Reuters, FTX stated that it owes nearly $31 billion to its 50 largest creditors, with around $14.5 billion owed to the top 10 creditors, without disclosing their names.

CME Group: Will Not Halt Crypto Futures Trading Due to SBF

According to a report by Bloomberg, Terry Duffy, CEO of the Chicago Mercantile Exchange (CME), emphasized that CME will not stop crypto futures trading just because of SBF as one "bad actor." Additionally, the Chicago Board Options Exchange (Cboe Global Markets) and software provider Trading Technologies also stated that they will continue to support digital assets.

This article is authorized for republication by Foresight NewsForesight News, Foresight News is a Chinese content platform in the Web3 vertical domain, committed to "objective and neutral" principles, dedicated to creating a Chinese gateway to the Web3 world.