© Reuters
Investing.com – The collapse of FTX resulted in approximately $9 billion in damages. A sum which the company is far from having.
John J. Ray, appointed CEO and administrator, must secure the remaining funds and decide if and how much of these funds can be allocated to FTX users.
He and his team have specialized in these kinds of cases, which appears to be a lucrative business model, as CNBC reported. The liquidator and the lawyers he has hired are directly remunerated by expense reports, which will considerably reduce the bankruptcy estate.
In order to get an overview of the confusing network of accounts and records, the CEO charges the company $1,300 per hour of work performed. To shed light on what US Attorney Damian Williams has called “the biggest fraud in American history”, the CEO still needs a few experienced collaborators.
This will be done by Kathryn Schultea, Chief Administrative Officer, Mary Cilia, director of the financial department and Raj Perubhatla, director of the information department. These three people are billed at $975 per hour. Thus, the capital remaining for the creditors decreases by 4,225 dollars per hour, which represents 8.45 million dollars over the year.
No one can say how long the process will take before users are eventually reimbursed for some of their losses. In the most optimistic case, the procedure will only last a few months, but it could also take years.
By Marco Oehrl