This podcast episode explores the aftermath of FTX's collapse and the role of John Ray in cleaning up the mess. Ray was shocked by the company's record keeping and lack of internal controls, and his goal was to determine where the money had gone and repay creditors. FTX's former CEO, Sam Bankman Freed, was charged with fraud. Ray managed FTX's finances during the bankruptcy case, maximizing value for creditors through asset evaluation and debt pursuit. Restarting FTX was not feasible, so Ray utilized various funds, resulting in an estimated surplus of $14 to $16 billion to fully reimburse customers. However, customers are not entitled to cryptocurrency appreciation and FTX holders receive no money back. The bankruptcy process prioritized creditors over shareholders. Despite this, early hedge fund investors celebrate a windfall, challenging Freed's solvency claims, and John Ray's achievements are highlighted.
