FTX Reorganizes, New CEO Seeks Support from Employees During Company Conference Call

After filing for bankruptcy protection last week, FTX's new CEO, John Jay Ray III, called on employees to unite in an all-hands meeting, people on The call told The Block.

"We need your support," Ray told the staff, according to the person on the call. Former billionaire Sam Bankman-Fried resigned from the company last week after a series of events that led to bankruptcy and a multibillion-dollar hole in the company's balance sheet, which Bankman-Fried attributed to management errors and former employees to fraud.

While many of the exchange's staff have left - including former institutional sales chief Zane Tackett and venture capital chief Amy Wu - there is still a large group of low-level to senior staff.

The company has some money to pay salaries, but it is unclear whether it will be able to keep contractors, according to people who attended the meeting. The company sent forms to employees to fill out and explain their roles in order to determine who to fire or dismiss.

Salaries are expected to continue as usual, although Ray warned there could be problems.

Ryne Miller, FTX US's general counsel, remained with the company as it transitioned into bankruptcy, handling external communications.

Mr Miller, who served as counsel to Securities and Exchange Commission Chairman Gary Gensler when he ran the CFTC, joined FTX in August 2021 from S ullivan & Cromwell, where he was a partner.

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