FTX Bankruptcy CEO Rakes in $1,575 Hourly Wage

FTX's CEO John J. Ray III received a substantial monthly salary of $363,825 in March, working extensive hours overseeing the exchange's bankruptcy. Ray's responsibilities included restructuring efforts, employee management, cash handling, and communication strategies. His involvement extended to AI company Anthropic, with charges of $4,252.50 for providing guidance and reviewing materials. Despite the challenging nature of the FTX bankruptcy, which Ray has compared to Enron's collapse, he remains the sole professional from his firm working on the debtors' behalf.

FTX Bankruptcy CEO's Hourly Wage Revealed in Court Filing

On Thursday, a court document unveiled that John J. Ray III, the CEO of the bankrupt cryptocurrency exchange FTX, received an hourly wage of $1,575 for his work during the month of March.

From March 1 to March 31, Ray logged 231 hours, resulting in a total payment of $363,825. His responsibilities, as detailed in a monthly staffing report, encompassed a wide range of tasks crucial to the bankruptcy restructuring process.

Among Ray's key duties were weekly phone calls and in-person board meetings to oversee the restructuring efforts. He also led weekly meetings and calls to facilitate communication and decision-making.

Furthermore, Ray's role involved establishing and maintaining internal controls, addressing employee concerns, interacting with management in various global locations, and managing cash, assets, investments, and data-related issues concerning the debtors. He also provided oversight for the debtors' public relations and communications strategies.

FTX abruptly collapsed in November 2022, leaving customers with an estimated $8 billion in unpaid debts. Ray, who previously assisted in the cleanup of the Enron corporate scandal, has characterized the FTX bankruptcy as far more complex than Enron.

In court filings following FTX's demise, Ray lamented the "complete failure of corporate controls" and the "absence of trustworthy financial information" that he encountered.

Notably, Ray is the sole professional employed by Owl Hill, his advisory firm, which was formerly known as Greylock Partners, to work on behalf of the debtors.

Work on Anthropic

Ray's work during the past month also included providing guidance to Anthropic, an AI company in which FTX held a stake. He reviewed documents related to Anthropic, for which a fee of $4,252.50 was charged. Other tasks undertaken by Ray included reviewing draft complaints, claim statuses, and matters pertaining to Japan.

Last week, court documents disclosed that FTX is selling two-thirds of its stake in Anthropic for $884 million.

Sam Bankman-Fried Sentenced

In a related development, Sam Bankman-Fried, the former CEO of FTX, was sentenced to 25 years in prison last week. He was found guilty of seven criminal counts, including wire fraud and conspiracy to commit wire fraud, as well as conspiracy to commit securities and commodities fraud.