FTX’s Chief Executive Officer has said that Sam Bankman-Fried’s deception has not ended even with his unprecedented fraud conviction.
As part of an extensive victim impact statement submitted Wednesday (March 20, 2024) prior to SBF’s sentencing this upcoming week, FTX CEO John Ray states that Bankman Fried’s assertion that his ex- customers would be reimbured in full is actually false.
Ray noted that customers still will “never be in the same position they would have been had they not crossed paths with Mr. Bankman-Fried and his so-called brand of ‘altruism.’”
Ray was appointed Chief Excutive at FTX following the cryptocurrency exchange filing for bankruptcy back in November 2022. Notably, Ray became CEO prior to Bankman-Fried being charged with orchestrating the massive fraud that resulted in the spectacular collapse of FTX.
After being convicted on major fraud as well as conspiracy charges this past November, the former exec now potentially faces many decades in prison. SBF’s sentencing is scheduled for this coming week.
US federal prosecutors have reportedly requested presiding Judge Lewis Kaplan to issue a sentence of anywhere between 40 to 50 years in prison.
As part of a court filing this past week, the prosecution said that Bankman-Fried had shown “unmatched greed” as well as “hubris” in using clients’s money for engaging in highly risky investments and selfish personal gain. They are now going after $11 billion in forfeiture in an effort to make up for the losses experienced by FTX investors as well as lenders to Alameda Research, which was the FTX sister firm linked very closely to the demise of all related operations.
As part of their response to these issues, Bankman-Fried’s legal team said in a recent court filing submitted on March 19 that the suggested sentencing is based on a “distorted” narrative and a “medieval” approach to punishment.
SBF’s defense has suggested a sentence of around 6.5 years, and stated in court that Bankman-Fried may not be considered a “super-villain.” Defense attorneys further claim that affected customers will be fully repaid.
As part of his statements made to the case Judge, Ray had said that since creditors are to be reimbursed according to the outstanding value of deposits when FTX filed for bankruptcy, their crypto-assets will be valued at around 400% less than the virtual currency’s current value.
Ray also mentioned that recovering the pilfered assets has required many hours of going through the “rubble of Mr. Bankman-Fried’s sprawling criminal enterprise” to give back fair value to FTX’s numerous creditors.
Ray’s filing added:
“AThere are plenty of things we did not get back, like the bribes to Chinese officials or the hundreds of millions of dollars he spent to buy access to or time with celebrities or politicians or investments for which he grossly overpaid having done zero diligence. The harm was vast. The remorse is nonexistent.”