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$4.5 billion

New FTX CEO Discusses Possibility Of Rebooting Defunct Crypto Exchange In First Interview Since Taking Over

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New FTX CEO Discusses Possibility Of Rebooting Defunct Crypto Exchange In First Interview Since Taking Over

Following recent disclosure that FTX debtors and bankruptcy administrators located $5.5 billion in liquid assets, the new FTX CEO John J. Ray III discussed the business in his first interview since taking over the exchange’s restructuring process. Ray detailed during the interview that he is open to the possibility of reviving the now-defunct digital currency trading platform.

FTX CEO John J. Ray III Explores Reviving the Fallen Crypto Exchange

The new FTX CEO and chief restructuring officer (CRO), John J. Ray III, conducted his first interview since the company filed for bankruptcy protection on Nov. 11, 2022. Ray told the Wall Street Journal (WSJ) that there may be value in restarting the crypto exchange and stressed that “everything is on the table.” Ray’s interview followed a recent press release and presentation by the bankruptcy team and FTX debtors, which were published to inform the committee of unsecured creditors.

“If there is a path forward on [rebooting FTX], then we will not only explore that, we’ll do it,” Ray told the publication.

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The presentation given to the committee of unsecured creditors showed that $5.5 billion in what are referred to as “liquid assets” have been discovered. However, the definition of “liquid” as it applies to the stash of locked SOL and cache of FTX token (FTT) is debatable. In addition to the $5.5 billion discovered, the bankruptcy team detailed that another $4.5 billion could be obtained by selling subsidiaries and marketing FTX’s real estate in The Bahamas. Ray said that there are stakeholders the debtors are working with who “have identified what they see as a viable business.”

New FTX CEO Addresses Tensions with Former CEO Sam Bankman-Fried, Criticizes Inner Circle’s ‘Spending Spree’

Ray also talked about the former CEO, Sam Bankman-Fried (SBF), as it’s been reported that the new CEO of FTX has kept his distance from the disgraced FTX co-founder. “We don’t need to be dialoguing with him,” Ray told the WSJ. “He hasn’t told us anything that I don’t already know.” However, The WSJ got a response from SBF, who called Ray’s commentary “shocking.”

“This is a shocking and damning comment from someone pretending to care about customers,” SBF told the WSJ. Ray sees things differently than SBF and the chief restructuring officer even criticized the co-founder’s Excel balance sheet theory. “This is the problem,” Ray told the WSJ interviewer. “He thinks everything is one big honey pot.

Ray disclosed that he had not seen anything like FTX during his entire career of restructuring companies. “They went on a spending spree,” Ray stressed. “Sometimes there were no purchase agreements, or the agreements weren’t signed,” the FTX CEO added. Once again, SBF denied the claims Ray made about the co-founder thinking things are akin to one big honey pot.

“Mr. Ray continues to make false statements based on nonexistent calculations,” SBF told the WSJ in a text message. “If Mr. Ray had bothered to think carefully about FTX US, he would likely have realized both that his interpretation is wholly inconsistent with bankruptcy law, and also that even if one were to subtract $250m from my balance sheet, FTX US would *still* have been solvent.”

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SBF added:

Rather, Mr. Ray sees everything as one big honey pot—one he wants to keep.

Ray does not see eye-to-eye with SBF at all and despite the FTX co-founder saying on countless occasions that he’d like to be helpful to creditors, Ray believes that SBF is being misleading, and causing more harm than good. Noting that SBF’s text message statements are false, Ray insisted that it is “unfortunate because people are continuing to be victims right now.” The new FTX CEO added: “They are victims of misinformation…It’s harmful.”

FTX’s exchange token, FTT, jumped in value on news stemming from Ray and his belief that there may be a possibility of reviving the defunct trading platform. FTT skyrocketed by 35%, reaching $2.48 per unit, after it was trading for $1.71 per unit before Ray’s interview was published.

Tags in this story

$4.5 billion, $5.5 billion, Balance Sheet, Bankruptcy, calculations, ceo, co-founder, commentator, Crypto, Excel balance sheet, Exchange, false statements, former CEO, ftx, FTX Bankruptcy case, FTX collapse, harm, honey pot, interpretation, John J. Ray III, liquid assets, misinformation, presentation, press release, purchase agreements, Real estate, restructuring, Sam Bankman-Fried, sbf, SBF Claims, spending spree, stakeholders, subsidiaries, The Bahamas, Theory, unsecured creditors, viable business, Victims

What do you think about Ray’s first interview since starting the FTX restructuring process? Share your thoughts in the comments below.

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Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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$4.5 billion

A16z Launches $4.5 Billion Crypto Fund Focused On Web3 Opportunities

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A16z Launches $4.5 Billion Crypto Fund Focused On Web3 Opportunities

A16z, one of the most influential VC firms in the crypto field, has announced the launch of a new cryptocurrency fund to invest in the development of Web3 startups. This fourth crypto fund from the firm, which will launch with a budget of $4.5 billion dollars, is set to focus on several key fields in the crypto environment, including blockchain games and decentralized finance.

A16z Bets Big on Web3 and Crypto

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A16z, one of the most active VC firms in crypto, has revealed it is launching yet another crypto investment fund. The new endeavor of the company, which will have $4.5 billion at its disposal, will focus on Web3 investments in companies at any growth rate. This, according to the company, is a bet on blockchain as one of the important technologies of the future.

A blog post written by Chris Dixon, a general partner at A16z and founder and leader of its crypto division, stated:

We think we are now entering the golden era of Web3. Programmable blockchains are sufficiently advanced, and a diverse range of apps have reached tens of millions of users. More importantly, a massive wave of world-class talent has entered Web3 over the last year.

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With this capital, the funds invested by A16z in the crypto ecosystem go over the $7.6 billion mark.

Investment Objectives

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A16z also explained how it is allocating the funds. In the blog post, Dixon clarifies that $1.5 billion will be put in seed investments, for companies that are still in the initial stages of their growth, and have to rely on investors to fund their operations. The other $3 billion will be put behind various venture investments not yet specified by the company.

The scope of A16z is large, the firm stating its investments will encompass different areas of the crypto community, including “web3 games, Defi, decentralized social media, self-sovereign identity, layer 1 and layer 2 infrastructure, bridges, DAOs, governance, NFT communities, privacy, creator monetization, regenerative finance, new applications of ZK proofs, decentralized content & story creation.”

The company also announced it will keep growing its operational team to offer better assistance to its portfolio companies, including research and engineering, security, talent and people, legal assistance, and marketing.

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A16z has also been active in other recent investments involving crypto and tokenization. It recently led an investment round in Flowcarbon, a carbon tokenization company backed by Wework co-founder Adam Neumann.

What do you think about A16z’s new $4.5 billion crypto and Web3 fund? Tell us in the comments section below.

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Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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