Market Analysis Report (20 Jan 2023)

FTX’s new chief executive officer, John J. Ray III, has said he established a task force to explore restarting FTX.com, the company’s main international exchange, as he works to return money to the failed company’s customers and creditors.

In an interview, Ray said that “everything is on the table,” and that “if there is a path forward on that, then we will not only explore that, we’ll do it.” The new FTX CEO said he would look into whether reviving FTX.com would recover more value for the company’s customers than simply liquidating its assets or selling the platform.

According to the Wall Street Journal, even if FTX retorts and gets traction, the outlook for FTX’s customers remains highly uncertain, as earlier this week the exchange identified “substantial shortfalls” of digital assets on its U.S. and international exchanges, relative to how much it owes customers.

The CEO’s new task is now to find any remaining sources of value that can help make up for a shortfall at FTX, the size of which has not been revealed. John J. Ray III has experience in restructuring struggling companies, and is famous for returning billions to Enron’s creditors.

FTX’s former CEO and co-founder, Sam Bankman Fried, who faces federal fraud and other criminal charges, has criticized the new CEO’s approach, saying it was a mistake for FTX to file for chapter 11 bankruptcy protection.

Ray’s forensics team is reportedly combing through more than 30 terabytes of FTX’s data to find information that could lead them to find more money for creditors. Last week, FTX disclosed it found $5 billion of liquid assets and a $4.6 billion investment portfolio.

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• Source: https://www.cryptocompare.com/email-updates/daily/2023/jan/20/