FTX CEO John Ray III refutes claims made by Sam Bankman-Fried (SBF) regarding losses suffered by users of the defunct exchange.
In a recent letter to Judge Kaplan, Ray denounced Bankman-Fried’s statements as false, emphasizing that exchange users have faced significant harm due to mismanagement.
Contrary to arguments made by SBF’s lawyers for a reduced prison sentence, Ray highlighted the extensive harm done to FTX customers, attributing it to SBF’s fraudulent actions and misallocation of assets.
‘Vast harm’
Ray outlined the challenges faced in recovering from the collapse of FTX, shedding light on SBF’s lack of remorse and unrecovered assets. He expressed concerns about the inability to fully compensate creditors and investors due to the extent of fraud committed.
He also criticized SBF’s portrayal of a solvent business at the time of bankruptcy, pointing out the difficulties in recovering assets and reimbursing stakeholders due to SBF’s actions.
Restructuring efforts
Ray discussed ongoing efforts to restructure FTX post-bankruptcy, highlighting the dedicated work of professionals in recovering stolen assets and transforming the company’s financial status.
He emphasized the challenges in valuing crypto claims and ensuring full economic recovery for all stakeholders, stressing the importance of his restructuring team’s efforts.
In conclusion, Ray condemned SBF’s actions and expressed confidence in the restructuring process despite the challenges faced.
