John J. Ray, the CEO now leading Exchange FTX through its bankruptcy process, has come forward to vehemently dispute the claims made by former CEO Sam Bankman-Fried and his defense. In a letter addressed to Judge Lewis Kaplan, Ray debunks previous arguments about FTX’s financial condition during its Chapter 11 bankruptcy filing, as well as addressing Bankman-Fried’s alleged financial losses.

Describing a scenario where Herculean efforts were required, Ray and his team dedicated themselves over the course of a year to transitioning FTX from a deep crisis to a state where a reorganization plan presents itself as a light at the end of the tunnel for creditors. He points out Bankman-Fried’s statements as “completely false,” illuminating the grim scenario he encountered upon taking the reins.

Ray details a turnaround saga where excessive luxuries and risky bets had previously wasted valuable assets, revealing a balance of just 105 bitcoins, a small fraction of the nearly 100,000 bitcoins claimed by customers at his takeover. This rescue journey culminated in the discovery of $7 billion in assets, a significant milestone next to the total $8.7 billion owed to customers.

Ray’s criticism did not spare Bankman-Fried’s management at FTX, highlighting that the path to bankruptcy is unlikely to fully cover the losses of creditors and investors, a direct consequence of fraudulent activities. He also raised concerns about repayments to customers and creditors contingent on the government waiving claims of more than $9 billion in fines and penalties tied to Bankman-Fried’s crimes.

The FTX saga illustrates a stark contrast between past and present leadership, with Ray challenging the post-Bankman-Fried solvency narrative as fantastical and highlighting mismanagement and its devastating consequences. The case, culminating in Bankman-Fried’s conviction on all charges, not only contrasts views within the company but also underscores the substantial impact on the cryptocurrency industry.


The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.


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