FTX restructuring chief and CEO John Ray III criticized efforts by Sam Bankman-Fried’s lawyers to reduce his sentence, arguing that users have been harmed and the harm continues. On March 20, Ray requested Judge Lewis Kaplan to correct material inaccuracies and omissions in Bankman-Fried’s sentencing submission on behalf of FTX and its millions of creditor victims.
FTX CEO Takes Notable Steps
The letter followed claims by Bankman-Fried’s lawyers on March 19 that the United States government prosecutors’ sentencing guidelines of 40 to 50 years were excessively harsh. Ray contended that Bankman-Fried’s assertions that FTX was solvent during bankruptcy and no money was lost were categorically, dispassionately, and verifiably false, stating:
“Customers would never be in the same position had they not crossed paths with Bankman-Fried and his so-called altruistic brand.”
Ray highlighted his leadership of a comprehensive team that transformed the property from a metaphorical dumpster fire into a company approaching a plan to return significant value to creditors over more than a year. Ray added in another part of the letter that Bankman-Fried’s victims could never be returned to the economic position they would be in today if not for his massive fraud.
Decision to Be Made on March 28
Ray took over the troubled exchange in November 2022 and detailed the extensive work done by a team of lawyers to recover assets, cooperate with investigations, and now position the firm to return all value to creditors. However, Ray stated that this recovery does not eliminate the significant damage caused by the crimes committed by Bankman-Fried.
Upon taking over as CEO, Ray noted that there were only 105 Bitcoins left at FTX against customer rights to approximately 100,000 Bitcoins. Ray questioned why the Bitcoins were missing and indicated that the jury concluded beyond a reasonable doubt that Bankman-Fried had stolen them and converted them into other things.
Ray accused Bankman-Fried of considering contradictory public relations strategies, including blaming the post-bankruptcy restructuring team while also claiming to want to work with them to repay creditors. Bankman-Fried is set to be sentenced on March 28 at the upcoming trial.
