The embattled former CEO of SBF recently said that John Ray’s testimony on FTX and its operational matters is false.
According to the former ftx CEO Sam Bankman-Fried (SBF), the testimony of his successor regarding the operational affairs of the sunken crypto exchange is false. The Bahamas-based ex-CEO claimed several legally admissible statements from John Jay Ray III’s camp were false. However, Bankman-Fried said she remains unsure whether the lie was an honest mistake or intentional malicious misinformation.
Bankman-Fried also claimed that John Jay Ray III and his team have despised her since taking office. According to the embattled former CEO, “John Ray and his team do not communicate with me. They haven’t replied and they haven’t replied to a single message I’ve sent. His team generally doesn’t work with me or, you know, care about what I have to say.
The SBF also suggested that the new CEO’s plan would be better executed by talking to people involved in the company before he takes over. he said:
“I think it’s very difficult, if you try and take over a company and refuse to talk with anyone involved in running that company, in the short term, know that someone Where would even the relevant data be.”
John J. Ray III’s Lambert FTX Management and Operations
Expanding further on her claim that Ray refused to consult with former FTX management on record-keeping, Bankman-Fried disputed Ray’s allegations of zero financial control. His reprimand directly addressed a question regarding a review of FTX’s financial controls by his successor. In an earlier controversy, Ray said the corporate handling of the bankrupt exchange was the worst in his 40-year career. Furthermore, the attorneys and bankruptcy professionals who also oversaw Enron’s bankruptcy described FTX’s management as “inexperienced, unsophisticated, and potentially compromised individuals”.
According to Ray, the defunct crypto exchange did not have proper records, books or security controls for its digital assets. He also disclosed in court filings that FTX lacked a proper employee structure and payroll system. Ray’s harsh assessment of FTX’s management and operations also extended to its sister firm Alameda Research. The bankruptcy expert alleged that the hedge fund and related businesses did not keep complete records of their investments. Furthermore, he advised the court to refrain from relying on audited financial statements, which he suggested were questionable.
SBF rebuttal ‘perjury’ for new FTX CEO another attempt to distance himself from bankruptcy mess
The SBF’s scathing response to what it believes is perjury is the most recent media outing for the embattled founder. Bankman-Fried has been highly vocal on social media and in numerous interviews ever since his once-acclaimed crypto exchange collapsed. Meanwhile, according to some legal experts, the former crypto-wunderkind May face criminal charges soon as he continues to tell his side of the story.
As SBF suggested, a central point of FTX’s downfall is its relationship with Alameda Research. The former billionaire alleged that the collapse of the crypto exchange began when Almeida took excessive collateral and liquidated. The effect created a substantial deficit on FTX’s balance sheet, which turned the company around. SBF also claimed that FTX sheltered a stub account since it could not secure bank accounts, which was a largely uncleared loan position.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to strip crypto stories down to the basics so that anyone anywhere can understand without a lot of background knowledge. When he is not delving deep into crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Bitcoin Crypto Related Post