April 17, 2024

Sam Bankman-Fried Claims FTX Suffered ‘Zero’ Losses Despite $11 Billion in Estimated Lost Funds

Sam Bankman-Fried’s legal team, the disgraced former FTX CEO and Democrat superdonor, claims that customers have lost “zero” dollars despite an estimated$ 11 billion in losses to customers and investors as a result of SBF’s fraud.

After being found guilty of five counts of conspiracy and two counts of wire fraud related to the collapse of the online money transfer Honors, Judge Lewis Kaplan on Friday sentenced Bankman- Fried to 25 years in prison.

In Bankman- Fried’s sentencing memo, his lawyers claimed that the “most fair measure of customer loss is zero” and that FTX was” liquid at the time of the bankruptcy petition”, and only had a “liquidity shortfall”.

FTX founder Sam Bankman- Fried speaks during the Institute of International Finance ( IIF ) annual membership meeting in Washington, DC, on Oct. 13, 2022. ( Ting Shen/Bloomberg via Getty Images )

” The wealth was it— not lost”, the doctors claimed.

The FTX customer loss, according to the prosecution, amounted to$ 8 billion. When including investment and borrowers ‘ costs for FTX and Alameda Research, FTX’s girl business and a hedge fund, the entire eclipses$ 11 billion.

John Ray, the current CEO of FTX, claimed in a vile letter to Kaplan that Bankman-Fried made “demonstrably false” assertions in his sentencing memo.

Breitbart News’s Lucas Nolan reported:

The letter also refutes Bankman- Fried’s claim that FTX is” solvent and safe”, with Ray pointing out that vast sums of money were stolen by the disgraced founder and converted into various assets, including Bahamas real estate, cryptocurrencies, and speculative ventures. Ray argues that while some assets have been recovered with the help of dedicated professionals, many have not, including investments that Bankman-Fried grossly overpaid and bribes to Chinese officials. The CEO states that the harm was “vast” and that Bankman- Fried’s remorse is “nonexistent”.

Bankman-Fried falsely claimed that FTX clients should “get back all their money” and that he could contribute to greater value recovery than the team that was the subject of the Chapter 11 bankruptcy petitions. Ray contends that these petitions were required to stop the harm brought on by Bankman-Fried’s çrimes aȵd that without them, recovery rates would have been much lower. The CEO also makes ƫhe observation that some victims are “extremely unhappy” about stolen bitcoins because they believe they should receive something more affordable than what is currentlყ available.

” … When I took over as CEO, there were only 105 bitcoins left on the FTX. com exchange, against customer entitlements of nearly 100, 000 bitcoins”, Ray explained.

Without Mr. Bankman-Fried’s massive fraud,” Mr. Bankman-Fried’s victims will never be able to recover to where they would be today,” Ray wrote.

For Breitbart News, Sean Moran covers policy reporting. Ƒollow him on Twitter