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New FTX CEO John J. Ray III Facing SEC Charges For Insider Trading?

Legal

coingape.com 11 November 2022 15:35, UTC
  
Reading time: ~2 m

Who is new FTX CEO John J. Ray III: While the crypto market responds negatively to the FTX bankruptcy announcement, the onus is now on the new FTX CEO John J. Ray III to deliver. Earlier, the FTX group had in an announcement said Sam Bankman-Fried has resigned from his role as CEO. The crypto market is largely down following the bankruptcy as it brings down curtains for a week of chaos around FTX.

New FTX CEO John J. Ray III Facing SEC Charges?

According to a report from the U.S. Securities and Exchange Commission, John J. Ray III is registered for insider trading. The name John J. Ray III is registered with the charges on account of lack of financial disclosures while being in responsible positions. The report mentions that the new FTX CEO traded stocks belonging to three companies while serving in roles requiring financial disclosures.

The main charge is that new FTX CEO John J. Ray III was an insider of a company while he traded its own stock. On another occasion, Ray is charged for insider trading as he traded the stocks of a company while he was serving as its director. Meanwhile, the FTX Group would look to traverse through the bankruptcy process in the new CEO’s leadership. In its bankruptcy announcement, the group said its assets can be effectively administered only in an organized process. The company said the new FTX CEO will be assisted by its employees across various countries around the world.

Crypto Market Recovery After FTX Announces Bankruptcy

Meanwhile, FTX Token (FTT) initially continued to drop further in the wake of the chapter 11 bankruptcy filing. However, it appears that the crypto market is showing signs of some recovery. As of writing, FTT price stands at $2.85, up 10.75% in the last one hour, according to price tracking platform CoinMarketCap. Whereas Bitcoin (BTC_ price stands $16,946, up 2.18% in the last one hour.

Meanwhile, outgoing FTX CEO Sam Bankman-Fried apologized to the community yet again after FTX’s announcement of bankruptcy. He expressed confidence in a series of tweets that bankruptcy does not mean the end for crypto companies. He added saying he would be working on giving clarity soon with respect to user recovery.

“This doesn’t necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly, and can be consistent with other routes.”


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