FTX fires three of its prime executives – WSJ

FTX-fires-three-of-its-prime-executives-–-WSJ
  • FTX has fired three of its prime executives.
  • This was after FTX tapped John J. Ray to oversee the companies’ bankruptcy.
  • Messrs. Bankman-Fried, Wang, and Singh all owned stakes in at least some of the FTX companies.

FTX, The troubled cryptocurrency exchange launched by Sam Bankman-Fried said it fired three of the founder’s top deputies. This has been made clear through the Wall Street Journal.

“Gary Wang, an FTX co-founder, and its chief technology officer; FTX engineering director Nishad Singh; and Caroline Ellison, who ran Mr. Bankman-Fried’s trading arm, Alameda Research, were terminated from those roles. This was after FTX tapped John J. Ray to oversee the companies’ bankruptcy.” an FTX spokeswoman said late Friday

Mr. Bankman-Fried resigned on Nov. 11, when FTX filed for bankruptcy. He was replaced by Mr. Ray, a veteran restructuring executive who once oversaw the liquidation of Enron Corp. 

Notably, FTX and Alameda sought protection from creditors after executives at both businesses revealed that FTX had lent billions of dollars worth of customer assets to Alameda to plug a funding gap, The Wall Street Journal previously reported. In a Thursday court filing, Mr. Ray highlighted numerous failings. These included “the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals.”

Additionally, on a Nov. 9 video call with Alameda employees, Ms. Ellison said that she, along with Messrs. Bankman-Fried, Wang and Singh, were aware of the decision to send customer money to the trading firm, the Journal previously reported. 

The four executives also comprised the board of what they called the Future Fund. This was a philanthropic arm charged with making grants to nonprofits and investments in “socially-impactful companies.”

Messrs. Bankman-Fried, Wang, and Singh all owned stakes in at least some of the FTX companies, according to Mr. Ray’s court filing.

Equally important, “Mr. Bankman-Fried ultimately agreed to resign. This resulted in my appointment as the debtors’ CEO,” Mr. Ray wrote in the filing. “I was delegated all corporate powers and authority under applicable law. They include the power to appoint independent directors and commence these Chapter 11 cases on an emergency basis.”

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