The CEO of FTX exchange, John Ray III, strongly denied assertions made by Sam Bankman-Fried’s group concerning FTX’s financial stability. Bankman-Fried’s claim that FTX has enough money to cover customer losses, according to Ray, was all a lie.
Reportedly, Bankman-Fried’s team tried to mitigate the impact of FTX’s collapse to be able to get a reduced sentence. Ray contends, however, that the claimed recovery is dependent upon the inflated value of assets at the time of bankruptcy filing. This implies that users may receive a refund in US dollars rather than the exact amount of cryptocurrency they originally deposited.
Ray highlights Bitcoin’s price surge since FTX’s bankruptcy. While users are owed nearly 100,000 bitcoins, FTX only had 105 on hand.
He then added some information that Bankman-Fried’s team has distorted stating that a part of funding that FTX has recovered comes from litigation brought against companies that acquired FTX assets from Bankman-Fried. Nevertheless, the ultimate recovery depends on two things: any criminal penalties being subordinated and agreements with government entities that have claims against FTX. To put it another way, FTX must prioritize paying back its debtors over potential criminal fines or costs in order to properly repay its creditors.
He later on concluded by saying that recovering stolen assets does not negate the fact that a theft occurred.
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