New FTX Boss Earns $1,300 Per Hour While Exchange Owes Top 50 Creditors Over $3 Billion
As soon as FTX filed for bankruptcy, Sam Bankman-Fried was ousted as CEO of the exchange. John Ray was named then new CEO. Since then he has been a strong critic of the methods of government adopted by Bankman-Fried. Ray was made CEO of FTX because he was believed to have the experience to clean up the mess caused by Bankman-Fried.
With this in mind, you are paid approximately $1,300 per hour for your services. Apart from this, many of the hired non-executive directors are supposed to be paid $50,000 a month. Considering that there is currently a freeze on all funds on the exchange, many restructuring experts strongly believe in paying senior staff salaries. This amount may seem like a minutiae compared to the costs required to completely restructure the exchange.
It is believed that as long as wages are paid, available resources and remaining value are conserved. If they are not paid, current employees are more likely to leave in search of other employment opportunities. The $1,300-per-hour sum that Ray, as well as many others, is being paid is described as a significant step in maintaining what remains of FTX.
The FTX Fiasco: It owes 3,000 million Dollars to 50 Creditors
Even as executives and employees have been paid, FTX continues to face a looming crisis. You have to pay the sum of more than 3,000 million dollars to the first 50 creditors. Of a large number of FTX creditors, the largest claim is for $226 million. The second creditor on the list must be paid about 203 million dollars. However, the identity of these creditors has not yet been revealed. The total amount that FTX owes to its creditors is nearly $3.1 billion.
According to the document filed by the bankruptcy attorneys, Top 50 list is based on borrower’s available credit information. This even includes customer information. It is worth mentioning that the amount will be distributed among creditors soon. But as far as traders are concerned, they may not get their cut soon..
FTX discloses its top 50 creditors are owed $3.1 billion.
The largest creditor is owed $226 million.
All names were redacted. pic.twitter.com/JGeddvMB7w
— Tom Dunleavy (@dunleavy89) November 20, 2022