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- 1 John J. Ray III has a reputation for turning around struggling companies.
- 2 He was appointed as CEO of FTX as he is a well-respected figure in the financial restructuring world.
John J. Ray has a legal career of over three decades. He has a reputation as an expert who restructures bankruptcy cases. He was born and raised in Pittsfield, Massachusetts. He graduated from the University of Massachusetts in 1980 where he pursued political science. He also served as an intern in the office of Democratic Senator Ted Kennedy.
Starting of John J. Ray’s Career
Afterward, Ray served a law degree at Drake University, he started his career at the accounting firm. Then he moved to the global law firm Mayer Brown in 1984. He started his career in corporate bankruptcies at Fruit of Loom. It is a popular clothing company.
In 1998, Ray was appointed as general counsel to the company. A year later the company filed for bankruptcy. He then became the Chief Administrative Officer and managed the excess debt by halting the payments to the vendors took legal action against the company’s former CEO and managed the sale of assets to Warren Buffet.
Ray has also long served as a restructuring executive in Wall Street who oversaw Enron’s bankruptcy process. Serving as Chief Executive of Enron during its bankruptcy he has recovered more than $828 million for creditors.
Ray Joined the Bankrupt FTX in 2022
John J. Ray has been involved in picking up multiple prominent corporate failures. Ray is a lawyer who specializes in restructuring troubled companies. After the resignation of Sam Bankman Fried, he took over the fallen cryptocurrency exchange.
He charged the failed crypto exchange $690,000 for his first week on the job. He told this to Judge John Dorsey in the U.S. Bankruptcy Court in Delaware. He admitted to the court that he charges $1300 an hour. That price breakdown indicates Ray worked 75 hours a week during his first months on the job including on Christmas.
The CEO who is trying to recover money for creditors said that the image formed by the FTX group to portray as the customer-focused leader of the digital age was just fake. The group. has misused all the customer deposits and corporate funds. Ray has been trying to settle the exchange’s affair since its collapse in November.
The CEO hinted in January that the exchange could be rebooted. But to date, there is no proof, only a hypothetical statement that there is a strong plan to restart the exchange aside from the assumptions.
Summary
Ray stated that he had never been such an utter failure in restructuring the company. But FTX had been run by inexperienced and unsophisticated individuals. FTX left the company owing its customers $8 Billion. Ray and his team had secured about $740 Million worth of cryptocurrency from parts of its business.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
