Summary
John J. Ray, the new CEO of FTX, wrote a letter to Judge Kaplan disputing claims made by former CEO Sam Bankman-Fried. Ray stated that FTX was not solvent and customers suffered due to mismanagement. He highlighted the challenges faced in recovering assets and emphasized the need for subordination of governmental claims for customers to be paid back. The government is seeking a 40-50 year sentence for Bankman-Fried, while his team is requesting 63-78 months. Bankman-Fried was found guilty of all charges and sentencing is scheduled for March 28.
Key Points
1. John J. Ray, the new CEO of FTX, wrote a letter to Judge Lewis Kaplan regarding former CEO Sam Bankman-Fried’s upcoming sentencing, disputing claims made by Bankman-Fried and his legal team about the financial state of FTX at the time of bankruptcy.
2. Ray’s team had to spend thousands of hours recovering assets from FTX, as the exchange only had 105 bitcoins left when he took over, despite customer claims nearing 100,000 bitcoins.
3. The government is seeking a sentence of 40 to 50 years for Bankman-Fried, while his team is petitioning for 63 to 78 months in prison, with the sentencing scheduled for March 28th.