FTX Bankruptcy Team Meets With Federal Prosecutors in NY
- New CEO John Ray attended meeting in Manhattan this week
- Manhattan prosecutors are leading DOJ probe of FTX collapse
FTX’s new CEO and bankruptcy lawyers met with Manhattan federal prosecutors investigating the cryptocurrency exchange’s collapse and allegations that it misused billions of dollars in customer funds, according to people familiar with the matter.
John J. Ray III, who was appointed FTX’s chief executive officer last month, met this week with the US attorney’s office for the Southern District of New York. Though details of the meeting weren’t immediately available, it suggests potential overlap between the criminal investigation and bankruptcy probe, which has unearthed FTX’s chaotic corporate governance under founder and former CEO Sam Bankman-Fried. Ray’s team has also raised concerns about the commingling of digital assets between FTX and sister trading house Alameda Research.