FTX, a cryptocurrency exchange that collapsed in 2022, is at the center of a legal battle as current CEO John J. Ray III disputes claims made by his predecessor, Sam Bankman-Fried. Bankman-Fried had asserted that customers suffered no financial losses due to the exchange's collapse, but Ray refutes this, calling the claims "delusional" and "false."
Ray emphasized that when he took over as CEO, the exchange had only 105 bitcoins left, a fraction of what customers were owed. While some assets were recovered, significant amounts, including funds spent on investments and bribes, remain unrecovered.
Despite efforts to repay customers, many remain dissatisfied with the valuations of their funds, as they will be refunded based on bankruptcy-time values rather than current, higher values. Ray stressed that customers, creditors, and stockholders have all suffered due to the collapse.
Bankman-Fried is facing sentencing on March 28, with prosecutors recommending a lengthy prison term. The dispute underscores the complexities and consequences of cryptocurrency exchange failures.