John Ray III, CEO of the FTX exchange, vehemently denied assertions made by Sam Bankman-Fried’s group about FTX’s financial stability. According to Ray, Bankman-Fried’s claim that FTX had enough money to cover client losses was entirely false.
Ray emphasizes Bitcoin’s price increase following FTX’s bankruptcy. While users are owed roughly 100,000 bitcoins, FTX only has 105 on hand.
Bankman-Fried’s team reportedly attempted to lessen the consequences of FTX’s failure in order to receive a lesser sentence. Ray believes, however, that the claimed recovery is based on the inflated valuation of assets at the time of bankruptcy filing. This means that users may receive a return in US dollars rather than the amount of cryptocurrencycurrency they originally deposited.
He then added some information that Bankman-Fried’s team has misrepresented, claiming that a portion of the funds recovered by FTX is the result of lawsuit taken against corporations that purchased FTX assets from Bankman-Fried. Nonetheless, the ultimate recovery is dependent on two factors: any criminal penalties being reduced and settlements with government agencies with claims against FTX. To put it another way, FTX must prioritize debt repayment over any criminal fines or charges in order to properly repay its creditors.
He further ended by stating that retrieving stolen goods does not diminish the fact that the theft occurred.
