Even though the crypto market is still recovering from FTX's collapse, some encouraging signs are emerging amid the SEC investigation.
The bitcoin exchange filed chapter 11 bankruptcy due to liquidity issues. FTX also replaced Sam Bankman-Fried with John Ray as CEO.
Investigation, even though the crypto market is still struggling to recover from the collapse of FTX.
Despite the crypto market's ongoing difficulties to recover after the shocking collapse of FTX, some encouraging signs are already emerging despite an ongoing SEC investigation. The beleaguered cryptocurrency exchange, unable to handle the liquidity problem, filed for chapter 11 bankruptcy. In addition to declaring bankruptcy, FTX also appointed John Ray as the new CEO in place of Sam Bankman-Fried. It remains to be seen if Ray can rally enough support to turn around the business's woes.
The Ideal Individual
Ray is the ideal candidate, according to former U.S. Securities and Exchange Commission Chair Jay Clayton, to guide FTX out of the crisis. He claimed that John Ray, who now serves as FTX's CEO, is the best candidate to guide the business toward stability and make the most of its resources. In Clayton's opinion, FTX's CEO is the best person for the position in terms of stabilising the situation and looking to operate, liquidate, or do both at once. During an interview with CNBC on Monday, he said the things.
Clayton also said that non-US cryptocurrency exchanges and businesses lacked fundamental investor safeguards. "Offshore financial institutions simply lack all of the fundamental safeguards that exist here in the United States." He continued by saying that those businesses did not segregate customer funds and used unregulated leverage. In addition to a lack of records and governance, he continued, non-US corporations have a virtually unrestricted opportunity to engage in numerous competing activities. Retail investors should steer clear of financial institutions that operate outside of the US, the former SEC chair advised.
Value of US businesses
The entities that are regulated, some of the entities in the U.S., they look to be the most financially stable and valuable going forward, he stated in reference to the crypto businesses operating there. There must be something valuable there.
The SEC investigation into FTX, meantime, is focused on how FTX handled user assets.
