John Ray III, the restructuring officer and CEO of FTX, has strongly criticized an attempt by Sam Bankman-Fried‘s lawyers to reduce his sentence, emphasizing the ongoing suffering of victims.
In a letter to Judge Lewis Kaplan on behalf of FTX and its millions of creditor victims, Ray aimed to correct misstatements and omissions in Bankman-Fried’s sentencing submission.
Ray disputed Bankman-Fried’s claims of FTX’s solvency at bankruptcy and the absence of losses, labeling them as categorically false. He highlighted the extensive efforts to recover assets and return value to creditors.
Despite the recovery efforts, Ray emphasized that Bankman-Fried’s crimes caused immense harm, pointing out the discrepancy between Bitcoin holdings and customer entitlements, which a jury concluded were stolen.
Ray revealed Bankman-Fried’s conflicting PR strategies post-bankruptcy, including blaming the restructuring team while expressing willingness to cooperate.
Ray stressed that victims, including customers, creditors, and stockholders, continue to suffer, despite recent market rallies benefiting the firm.
Bankman-Fried’s lawyers argued for a reduction in the proposed 40-to-50-year sentence, describing it as “medieval,” and requested a shorter term of around five to six and a half years.
Ray concluded by underscoring the significant losses and ongoing suffering experienced by victims, as Bankman-Fried awaits sentencing on March 28.
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