Disgraced FTX founder Sam Bankman-Fried lashed out on the firm’s new CEO John Ray, alleging he has made “false” statements in courtroom filings throughout the firm’s contentious chapter proceedings.
Ray, who's tasked with steering FTX via intense authorized and regulatory scrutiny, claimed in chapter courtroom final month that FTX lacked any company controls or correct books monitoring its funds previous to its downfall.
Bankman-Fried fired again throughout a two-hour podcast interview – the newest cease in an ongoing media apology tour through which the 30-year-old has tried to distance himself from the scandal at the same time as prospects and traders are nonetheless owed billions of dollars.
“There have been a number of statements which have been made, which have been placed on authorized file, that I do know to be false,” Bankman-Fried claimed when questioned Monday on “The Block.” “I don’t know in the event that they had been deliberately mendacity or that it was simply an trustworthy mistake due to folks not consulting with anybody who knew the place these information had been.”
“There have been instances the place it’s been mentioned XYZ didn't exist, and I'm observing a duplicate of XYZ,” Bankman-Fried added. “None of my emails have been answered.”
Bankman-Fried resigned as FTX CEO on Nov. 11, the identical day the corporate filed for chapter. Ray and different FTX caretakers have been sharply important of the corporate’s earlier administration underneath Bankman-Fried and his associates within the days previous to its collapse.
Within the testimony filed in courtroom on Nov. 17, Ray, a restructuring professional and veteran of infamous vitality agency Enron’s chapter, described bookkeeping practices at FTX because the worst he’s encountered in his profession.
“By no means in my profession have I seen such a whole failure of company controls and such a whole absence of reliable monetary info as occurred right here,” Ray mentioned within the submitting.
“From compromised techniques integrity and defective regulatory oversight overseas to the focus of management within the fingers of a really small group of inexperienced, unsophisticated and doubtlessly compromised people, this case is unprecedented,” Ray added.
Bankman-Fried, who has vacillated between apologetic and defiant tones in varied media appearances in regards to the FTX chapter, pushed again on Ray’s characterization. He additionally accused FTX’s new leaders of refusing to talk with him.
“I might dispute the declare that there have been zero monetary controls,” Bankman-Fried mentioned. “I utterly agree that there have been locations through which there have been very poor controls and that these locations had been important and that that was actually dangerous.”
“I feel it’s fairly arduous, in case you attempt to take over an organization and refuse to speak with anybody who was concerned in operating that firm, to, in a brief time period, know the place any of the related information can be,” he added.
Bankman-Fried has drawn comparisons to the late Ponzi scheme mastermind Bernie Madoff in latest days as FTX’s new leaders and investigators study what occurred on the firm.
In a single latest interview, Bankman-Fried claimed to have “misaccounted” a whopping $8 billion on FTX’s steadiness sheet simply earlier than it imploded.
A lot of the scrutiny has centered on Reuters’ report that Bankman-Fried secretly shifted $10 billion in FTX shopper funds to cowl losses at Alameda Analysis, a sister crypto buying and selling agency he additionally owned.
FTX’s new attorneys have additionally accused Bankman-Fried of operating the corporate as if it had been his “private fiefdom” and overseeing lavish spending – together with $300 million on luxurious actual property within the Bahamas.
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