FTX CEO John Ray III has debunked Sam Bankman-Fried’s (SBF) claims concerning the degree of losses suffered by customers of the defunct alternate.
In a March 20 letter to Decide Kaplan, Ray stated Bankman-Fried’s statements had been “categorically, callously, and demonstrably false” as a result of the alternate customers would “by no means be in the identical place they might have been had they not crossed paths” with the convicted founder and his corporations.
Over the previous weeks, SBF’s legal professionals have referred to as for a decreased jail sentence, arguing that the failed alternate was solvent at its chapter and that there have been no tangible losses because the chapter proceedings would guarantee full restoration “with curiosity” to all involved events.
‘Huge hurt’
Nonetheless, Ray countered these arguments, saying the hurt carried out to FTX prospects was “huge,” and SBF has proven no regret for his actions.
Ray acknowledged:
“After I took over as CEO, there have been solely 105 bitcoins left on the FTX.com alternate, in opposition to buyer entitlements of practically 100,000 bitcoins. Why had been the bitcoins lacking?”
Ray defined that SBF’s theft of those property prevents the bankrupt alternate from returning the property to impacted prospects “in-kind” as a result of FTX didn’t possess the crypto that prospects assumed was held of their accounts as of the time of chapter.
He added:
“Even one of the best conceivable end result within the Chapter 11 continuing is not going to yield a real, full financial restoration by all collectors and non-insider fairness traders as if the fraud by no means occurred.”
Ray concluded that SBF has continued to reside a lifetime of “delusion,” including that the disgraced founder didn’t depart a “solvent nor protected” enterprise on the time of chapter in 2022.
Restructuring efforts
In the meantime, Ray praised his restructuring group for reworking “a metaphorical dumpster fireplace to a debtor-in-possession.”
In line with him:
“Issues that [SBF] stole, issues he transformed into different issues, whether or not they had been investments in Bahamas actual property, cryptocurrencies or speculative ventures, had been efficiently recovered by means of the big efforts of a devoted group of execs.”
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