Current FTX CEO John Ray described Sam Bankman-Fried’s (SBF) arguments about his non-involvement in the company’s collapse as “reckless” and “false.”
Previously, lawyers for the former CEO of the exchange claimed that in fact, the exchange’s clients did not suffer any losses, as after the bankruptcy procedure, everyone will receive full reimbursement.
The defense also proposed reducing the sentence to five to six years in prison, instead of the 40-50 years suggested by the prosecutor.
“I can assure the court that each of these statements is categorically reckless and clearly false. Clients will never be in the same position they would have been if their paths had not crossed with Bankman-Fried and his so-called variety of ‘altruism’,” Ray stated.
He added that the return of assets is the result of the hard work of dedicated professionals, not SBF.
According to the FTX CEO, Bankman-Fried overlooks important factors in the return process. For example, clients who stored bitcoins on the exchange will receive a cash equivalent that is approximately 400% lower than the current value of the assets, as the reimbursement amount is calculated based on the rate at the time of filing.
Moreover, many user accounts may be inaccurately displayed due to “black” borrowing from Alameda Research, Ray added.
“There are many things we did not get back, such as bribes to Chinese officials or hundreds of millions of dollars spent to buy time with celebrities and politicians, or investments for which [SBF] grossly overpaid, showing zero diligence,” he added.
According to the current head of FTX, at the time he took office, the company’s balance sheet had only 105 BTC against a debt of 100,000 BTC.
Ray added that Bankman-Fried “continues to live in delusions.” He also agreed with the jury’s guilty verdict.
Earlier, the court received 29 letters in support of Bankman-Fried requesting leniency in his future sentence, including from his family members and a cellmate. The verdict is scheduled to be announced on March 28.
Back in September 2023, the new FTX leadership filed a lawsuit against Bankman-Fried’s parents to recover misappropriated funds and property worth “millions of dollars.”