The CEO of FTX Trading Limited, John J. Ray III, didn’t hold back in a letter to Judge Lewis A. Kaplan, slated to sentence cryptocurrency figure Sam Bankman-Fried next week.
Ray vehemently refuted Bankman-Fried’s assertion that his actions didn’t harm customers, lenders, and investors, calling it a “callously false” narrative and accusing Bankman-Fried of living in a “life of delusion.”
Bankman-Fried, founder of a cryptocurrency company, was convicted of fraud and conspiracy charges last November. His once-thriving enterprises collapsed in November 2022, just a year after a period of immense success marked by a Super Bowl advertisement, celebrity endorsements, and congressional testimony.
Ray disputed claims made in Bankman-Fried’s sentencing submission, particularly emphasizing the losses suffered by victims of Bankman-Fried’s crimes.
He stressed that the financial impact of Bankman-Fried’s actions was substantial and far-reaching, with significant sums stolen and many victims left unreimbursed.
Despite efforts to recover lost assets, including substantial work by professionals, Ray asserted that customers will never fully recover their losses.
Prosecutors accused Bankman-Fried of pilfering over $10 billion from customers, lenders, and investors, seeking a lengthy prison sentence as a result. Bankman-Fried’s defense team, however, argued for a much shorter term, suggesting that those who suffered losses would be compensated.
Ray highlighted the ongoing dissatisfaction among Bankman-Fried’s victims, particularly regarding the valuation of their claims and the inability to recover certain funds, such as bribes and misrepresented bitcoins.
He also criticized Bankman-Fried’s lavish spending and apparent lack of remorse, suggesting that his actions were driven by hubris and a disregard for legal norms.
In a separate letter, Bankman-Fried’s attorney, Marc Mukasey, pointed to a communication indicating potential full recovery for FTX investors, though Ray remained skeptical.
The sentencing hearing, scheduled for next week, will determine the consequences for Bankman-Fried’s actions.
