In recent developments, John Ray III, CEO and chief of FTX’s restructuring, has publicly opposed the attempts by Sam Bankman-Fried’s legal team to diminish his punishment. Through a letter to Judge Lewis Kaplan on March 20, Ray sought to rectify the inaccuracies in Bankman-Fried’s plea for a lenient sentence, emphasizing the ongoing detriment to FTX users and millions of creditors.
John Ray III Defends FTX Creditor Interests
Ray’s letter was a response to claims made on March 19 by Bankman-Fried’s defense, arguing that the proposed sentencing range of 40 to 50 years was unduly severe. Ray refuted Bankman-Fried’s propositions that FTX remained solvent during its bankruptcy and that no financial losses were incurred. He insisted that customers have suffered significantly due to Bankman-Fried’s so-called altruistic operations.
Comprehensive Recovery Efforts Underway
Since assuming control over FTX in November 2022, Ray has led a team of lawyers in recovering assets, collaborating with probes, and strategizing the maximization of creditor returns. Despite these efforts, Ray acknowledges that the damage from Bankman-Fried’s illicit actions cannot be undone. He revealed that upon his takeover, FTX possessed a mere 105 Bitcoins against claims to about 100,000, questioning the disappearance of such assets.
Ray also criticized Bankman-Fried’s public relations maneuvers, which included shifting blame to the post-bankruptcy team while simultaneously expressing a wish to aid in compensating creditors. The final judgment for Bankman-Fried is expected to be passed on March 28 at his upcoming trial.