- FTX CEO John Ray denounces Bankman-Fried’s view that there was no hurt throughout FTX’s collapse as false.
- Ray highlights omitted components within the Bankman-Fried declare, such because the diminished worth of claims for victims.
- Ray additionally claims that the BTC that Bankman-Fried is probably going utilizing is lacking and calls his life-style delusional.
In a latest authorized submitting, John J. Ray III, CEO of the failed FTX alternate, disputed former CEO Sam Bankman-Fried’s claims in regards to the influence of the alternate’s collapse in 2022. Ray known as Bankman-Fried’s claims “zero.” harming prospects as reckless and bogus, setting the stage for a authorized showdown.
In response to Ray, Bankman-Frieda’s protection staff argued in opposition to the proposed jail time by arguing that FTX’s collapse “was by no means misplaced” as a result of the collectors’ claims would have been happy by chapter proceedings. Nevertheless, Ray countered by stating that every of Bankman-Fried’s statements was categorically false and deceptive.
Ray went on to elaborate on the complexities of asset restoration, arguing that Bankman-Fried’s optimism in regards to the full restoration of misplaced worth ignored important components. He identified that victims who held bitcoins in FTX on the time of the collapse would probably obtain considerably lower than the present worth, citing a 400% lower because of distribution calculations based mostly on the petition date.
Moreover, Ray pointed to discrepancies in buyer accounts pointing to alleged “backdoor” lending by Alameda Analysis. He accused Bankman-Fried of dwelling in a state of delusion and pointed to mismanagement of funds and private acquire on the expense of FTX prospects.
The authorized saga surrounding Sam Bankman-Fried has reached a important level as his sentencing approaches. After being convicted by a New York jury of defrauding FTX and Alameda Analysis buyers, Bankman-Fried faces the prospect of serious jail time. With sentencing scheduled for March 28, the conflict between present FTX administration and its former boss provides one other layer of complexity to this high-profile case.
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