FTX CEO John J. Ray III pushes back against former CEO Sam Bankman-Fried’s assertion that no money was lost during the exchange’s collapse in 2022, calling it blatantly untrue.
Ray emphasises that Bankman-Fried’s claims of solvency are misguided, contrasting them with the estate’s commitment to fully reimburse customers, as outlined in January. Bankman-Fried’s defence team relies on the estate’s recovery to advocate for a reduced sentence, but Ray contends that this doesn’t absolve Bankman-Fried of criminal behaviour.
Ray highlights the dire financial state of the exchange when he assumed leadership, with only 105 bitcoins left compared to the owed 100,000 bitcoins. While some assets were recovered, others, like bribes and extravagant expenditures, remain irretrievable. Ray criticises Bankman-Fried’s lack of remorse and questions the sincerity of his proclaimed “effective altruism.”
Despite the recovery efforts, many customers express dissatisfaction with the valuation of their refunds, which are based on bankruptcy-time portfolio values rather than current inflated ones. Ray argues that customers will never fully recover from the economic impact of Bankman-Fried’s fraud. Victim impact statements from FTX customers detail the emotional and financial hardships caused by the exchange’s collapse.
Ray emphasises that the increase in asset values and recovery efforts do not negate the suffering experienced by customers, creditors, and stockholders. The impending sentencing of Bankman-Fried looms, scheduled for March 28th.