CEO Dispute Over FTX Collapse

The current CEO of FTX, John Ray, has challenged former CEO Sam Bank Fried’s claim that there was no harm to customers during the platform’s collapse in 2022, calling it reckless and false. Ray’s criticism comes after Bankman-Fried was convicted for embezzling $8 billion from FTX customers in November.

John Ray Questions SBF’s Defense

Bankman-Fried’s defense strategy hinges on the possibility of customer reimbursement through bankruptcy proceedings, arguing that his actions should not be considered theft. Ray countered this by stating that customers will not be in the same position they would have been without Bankman-Fried’s actions, attributing any fund recovery to the efforts of professionals managing the bankruptcy estate.

Ray’s remarks precede SBF’s sentencing on March 28, facing a potentially lengthy prison term. Bankman-Fried’s defense team opposes the prosecutors’ recommended 40 to 50-year sentence.

Challenges to Recovery Claims

SBF, who pleaded not guilty to seven fraud and conspiracy charges, maintains his innocence while acknowledging mistakes in managing FTX. He claims that FTX customers will be fully reimbursed through bankruptcy proceedings and has worked diligently to recover funds post-collapse. However, Ray disputes this, highlighting discrepancies in the recovered value for individuals holding bitcoin in FTX at the time of collapse. He also points out inaccuracies in account statements due to covert borrowing by Alameda under SBF’s direction.

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By Team