FTX CEO Criticizes SBF’s Daring Declare of ‘Zero’ Hurt to Clients as ‘Reckless’ and ‘False’

The present CEO of FTX, John Ray, has disputed the previous CEO Sam Financial institution Fried’s assertion that there was “zero” hurt to clients throughout the platform’s collapse in 2022, labeling the declare as “reckless” and “false.”

Ray’s criticism follows Bankman-Fried’s conviction in November for embezzling $8 billion from FTX clients.

John Ray Challenges SBF’s Protection Technique

The previous CEO’s protection technique has relied closely on the notion that since there is likely to be an opportunity of buyer reimbursement by chapter proceedings, his actions shouldn’t be thought-about theft.

“I can guarantee the Courtroom that every of those statements is categorically, callously, and demonstrably false,” Ray wrote in a Wednesday submitting. “Clients won’t ever be in the identical place they might have been had they not crossed paths with Mr. Bankman-Fried and his so-called model of altruism.”

He additionally acknowledged that the restoration of funds for FTX clients will not be a testomony to SBF’s innocence however quite the results of diligent efforts by professionals managing the chapter property.

Ray’s statements come forward of SBF’s sentencing scheduled for March 28, the place he faces the prospect of a prolonged jail time period.  Bankman-Fried’s protection group opposed the prosecutors’ instructed 40 to 50-year jail time period.

Ray Challenges Restoration Claims

SBF, who pleaded not responsible to seven fraud and conspiracy counts, has maintained his innocence, claiming that he by no means meant to steal funds regardless of acknowledging errors in working FTX.

“The memorandum distorts actuality to help its valuable ‘loss’ narrative and casts Sam as a wicked super-villain,” Mukasey wrote on Monday, referring to the sentencing proposal.

He had additionally beforehand acknowledged that FTX clients had been anticipated to be totally compensated by chapter proceedings and that he had labored diligently to get better funds after the change’s collapse.

Ray has disputed this, stating that SBF’s assertion about full worth restoration overlooks necessary particulars, mentioning that people who held Bitcoin in FTX on the time of collapse would obtain a recovered worth considerably decrease, by 400%, than present charges. This discrepancy arises as a result of the distribution worth is set based mostly on the petition date, failing to account for the rise in value values since then.

He additionally acknowledged that as a result of covert borrowing by Alameda below SBF’s course, the account statements had been inaccurate, because the FTX debtors didn’t possess the cryptocurrency clients believed was held of their accounts as of the petition date.