FTX's New CEO Fires Back at SBF's False Promises, Victims Left in the Lurch Bankrupt FTX victims, brace yourselves for a bitter pill.
Compensation won't make you whole, not even close. As the exchange's doors closed in November 2022, the bear market values will dictate your refunds.
In a letter to Judge Lewis Kaplan,
John J. Ray III, FTX's current CEO, didn't mince words when it came to
Sam Bankman-Fried (SBF) and his legal team. Calling SBF "delusional," Ray slammed the false solvency claims and full refunds promised to customers.
SBF's legal team tried to downplay the damage, arguing for a lighter sentence of 6.5 years instead of 40-50. But prosecutors saw through it, pushing for a hefty term given the
$10 billion allegedly swindled by the former FTX honcho.
Ray's assessment echoed the prosecution's stance, highlighting the
vast harm inflicted by SBF. The remorse? Nowhere to be found. Effective altruism? Just a facade in SBF's case.
While some funds were recovered and the recent BTC rally provided a glimmer of hope, Ray cautioned that certain sums are beyond reach—like those $150 million in bribes or the phantom 100,000 bitcoins on customer statements.
Adding salt to the wound, bankruptcy rules dictate that all claims will be valued as of November 11, 2022—when crypto assets were a mere fraction of their current worth. PWC may oversee the process, but it won't erase victims' unhappiness.
To add insult to injury, compensation won't come in shiny crypto coins but rather in
USD, and not at today's prices. With some funds still missing, the final value could be a far cry from what victims had hoped for.
