FTX CEO Criticizes Sam Bankman-Fried's Attempt to Reduce Sentence Amid Ongoing Victim Suffering
Summary:
John Ray III, FTX CEO and restructuring officer, criticizes efforts made by Sam Bankman-Fried's legal team to reduce his prison sentence, accusing him of ignoring the victims' ongoing suffering. Ray responds to claims which argue for a less severe sentencing, stressing that Bankman-Fried's fraud resulted in significant harm to the firm and its creditors. Despite the restructuring and asset recovery efforts led by Ray, he highlights the continuous impact on customers and creditors. The U.S. government found Bankman-Fried guilty on several fraud and money laundering charges, with sentencing set for March 28.
John Ray III, the CEO and restructuring officer for FTX, has criticized an act by Sam Bankman-Fried's legal team attempting to lessen his prison term, stating it ignores the ongoing suffering of victims. On March 20, Ray communicated with Judge Lewis Kaplan, presenting a victim impact report on behalf of FTX and its numerous creditor victims to address inaccuracies in Bankman-Fried's sentencing plea. His response followed Bankman-Fried's attorneys contention on March 19 that the 40 to 50-year term proposed by U.S. government prosecutors seemed excessively severe. Ray dismissed Bankman-Fried's assertions that FTX was financially stable when it declared bankruptcy and no money got lost as entirely untrue. He highlighted that customers will still never be in the position they would have been without their encounters with Bankman-Fried and his so-called 'altruism'. In his letter, Ray accentuated his role leading a large team for over a year, guiding the company from its troubled state to a position nearing a plan that will significantly reimburse the creditors. His impactful words continued, stating, “His victims will not regain their original economic position today, had it not been for his enormous fraud." Ray became the CEO amid the company's crisis in November 2022 and elaborated on the substantial work by a team of attorneys to retrieve assets, cooperate with investigations, and set up a plan to repay all value to creditors. However, the efforts to recuperate do not undo the significant damage caused by Bankman-Fried's criminal acts, Ray indicated. Upon adopting his position as CEO, the firm had a minimal balance of 105 Bitcoin against customer's nearly 100,000 claimed Bitcoin. The query, “Why are the Bitcoins missing?”, was followed by Ray stating that a jury found conclusively that Bankman-Fried had stolen them and converted them. Ray declared that even as Bankman-Fried contemplated blaming the restructuring team for the bankruptcy, he claimed to be cooperative in repaying creditors. Ray acknowledged the Chapter 11 bankruptcy case as the pivotal factor enabling the company's assets to recover in value, considering the recent crypto market upswing. In conclusion, he emphasized the continuous suffering of customers, governmental and non-governmental creditors, and non-insider stockholders. Bankman-Fried's attorneys argued that a sentence of 40 to 50 years for a non-violent crime resembled 'medieval' punishment, asking for a reduction to an approximate 5 to 6.5 years. The U.S. government has found Bankman-Fried guilty of seven charges concerning various instances of fraud and money laundering, almost a year after the crypto exchange collapsed. His sentencing is scheduled for March 28.
Published At
3/21/2024 9:17:24 AM
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