Even with repeated claims from the FTX individual bankruptcy restructuring crew that the two the intercontinental and U.S. exchanges are missing millions worth of purchaser money, disgraced ex-CEO Sam Bankman-Fried states they are completely wrong.
FTX, led by the exact restructuring CEO who oversaw Enron’s bankruptcy, John Ray, created a presentation yesterday to the company’s committee of unsecured collectors. Soon after what Ray called a “Herculean investigative hard work,” the staff has situated only $181 million truly worth of FTX US cash. It states that 50 % of these assets were being drained from wallets in “unauthorized transfers” subsequent FTX filing for Chapter 11 individual bankruptcy security on November 11.
“These statements by S&C are incorrect, and contradicted by data afterwards on in the same doc,” Bankman-Fried wrote in a Substack publication, referring to Sullivan & Cromwell, the lawful staff that established the presentation. “FTX US was and is solvent, probable with hundreds of millions of bucks in excessive of purchaser balances.”
Bankman-Fried, at present below household arrest and charged with 8 economic crimes in link with the collapse of FTX, has employed a authorized group to characterize his passions in the Delaware FTX individual bankruptcy case. But that has not stopped him from publicly denying promises produced by the restructuring crew and publishing screenshots of spreadsheets that he states depict the condition his crypto empire was in when he stepped down just immediately after submitting for individual bankruptcy.
“Later in the exact report, S&C reveals that FTX US has an extra $428m USD in bank accounts, on leading of the $181m of tokens—for roughly $609m of whole assets,” Bankman-Fried wrote, apparently referring to a “Confirmed Cash” table attributing $428 million to the West Realm Shires silo. West Realm Shires is the U.S.-based mostly mother or father firm of FTX US, LedgerX, and the entity that inked a deal to bailout crypto lender BlockFi before it also submitted for bankruptcy.
Ray wrote in his first declaration, on November 17, that the West Realm Shire silo involves FTX US, LedgerX (which is not a debtor in FTX’s bankruptcy), FTX US Cash Marketplaces and Embed Clearing. It’s possible, but tricky to know, if Bankman-Fried thinks of the West Realm Shire silo as only symbolizing FTX US resources.
Bankman-Fried goes on to make clear how he arrived at his conclusion that FTX US isn’t lacking any customer resources. But it is important to be aware that he’s applying quantities that have been latest when he stepped down as CEO on November 11 and Ray has been distancing FTX from its founder and slicing off his accessibility to business records.
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