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John Ray III Critiques SBF's Defense, Exposes Deep Flaws Before Sentencing

As SBF's sentencing approaches, John Ray III reveals the reality behind FTX's collapse. He challenges SBF's defense and highlights the harm caused to victims, exposing a narrative far removed from claims of solvency and altruism.

Image Source: John Ray III ( SBF (HT).
  • John Ray III, acting CEO of FTX, has strongly criticized Sam Bankman-Fried (SBF) for his defense claims, asserting that the actual situation at FTX involves significant financial losses and customer asset depletion.
  • Ray's statement to Judge Kaplan underscores the severe impact of SBF's actions on FTX, describing the founder's version of effective altruism as a falsehood.
  • Legal documents reveal SBF's alleged mismanagement led to FTX having only 105 bitcoins, a sharp decline from nearly 100,000 claimed by users.

In a series of statements and court documents, the legal and operational aftermath of FTX's collapse has unfolded, revealing deep controversies and accusations against its founder, Sam Bankman-Fried (SBF). 

John Ray III, the restructuring officer and CEO of the bankrupt crypto exchange has been vocal in criticizing SBF's defense and actions. In a letter to U.S. District Judge Lewis Kaplan on March 20, Ray highlighted that despite SBF's claims of solvency and non-loss at FTX, the reality shows a stark contrast, with vast sums of money missing and customer assets significantly depleted. 

“The harm was vast. The remorse is nonexistent. Effective altruism, at least as lived by Samuel Bankman-Fried, was a lie,” wrote Ray.
Image Source:Cointelegraph

The letter comes after SBF's legal team on March 19 argued that the 40 to 50-year sentencing recommendation by US prosecutors was excessively severe.

The accusations include SBF stealing $8 billion from FTX customers and engaging in fraudulent activities that led to one of the largest financial frauds in history. The legal proceedings further revealed that under SBF's management, FTX was left with a mere 105 bitcoins against nearly 100,000 claimed by users, hinting at significant mismanagement and potential misconduct.  

Judge Kaplan is set to deliver Bankman-Fried's sentencing on March 28th in a federal court in Manhattan.

Edited by Harshajit Sarmah