Discredited ex-CEO Sam Bankman-Fried disputes numerous assertions from the FTX bankruptcy reorganization group that millions of dollars' worth of client cash are gone from both the international and U.S. exchanges.
John Ray, the reorganization CEO of FTX who also supervised Enron's bankruptcy, delivered a speech yesterday to the organization's committee of debt holders. Only $181 million in FTX US money had been discovered after what Ray called a “Herculean investigative effort.” It claims that after FTX filed for Chapter 11 bankruptcy on November 11, half of those funds were taken from purses in “unauthorized transfers.”
“These claims by S&C are wrong, and contradicted by data later on in the same document,” Bankman-Fried mentioned Sullivan & Cromwell, the team of lawyers behind the presentation, in a Substack newsletter. “FTX US was and is solvent, likely with hundreds of millions of dollars in excess of customer balances.”
Bankman-Fried has recruited a team of lawyers to defend his rights in the Delaware FTX bankruptcy case. Bankman-Fried is currently placed under house arrest and is accused of eight economic offenses related to the bankruptcy of FTX. But despite this, he continues to publicly refute statements made by the reorganization team and distribute pictures of spreadsheets he claims show the condition his crypto empire was in when he abruptly resigned shortly after declaring bankruptcy.
“Later in the same report, S&C reveals that FTX US has an additional $428m USD in bank accounts, on top of the $181m of tokens—for roughly $609m of total assets,”
Bankman-Fried allegedly made reference to a “Confirmed Cash” table that credited the West Realm Shires silo with $428 million. The parent business of FTX US, LedgerX, and West Realm Shires is situated in the United States. It is also the organization that signed a deal to save crypto lender BlockFi before it too declared insolvency.
Bankman-Fried allegedly made reference to a “Confirmed Cash” table that credited the West Realm Shires silo with $428 million. The main business of FTX US, LedgerX, and West Realm Shires is situated in the United States. It is also the organization that signed a deal to save crypto lender BlockFi before it too declared insolvency.
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