Former FTX CEO Sam Bankman-Fried, also referred to as SBF, was arrested on Dec 12, a day earlier than he was set to testify earlier than Congress remotely. A replica of his testimony, obtained by Forbes, highlights that the disgraced CEO deliberate responsible the spectral downfall of his $32 billion empire on everybody however himself.
SBF continued the identical rhetoric about FTX.US, the sister firm of the worldwide cryptocurrency alternate, in his testimony. He claimed that the United States-based entity was nonetheless “totally solvent” regardless of it being part of the Chapter 11 chapter filed on Nov. 11. Bankman-Fried wrote:
“I want I had not clicked on a button on Docusign at 4:30 am, leaving a few of FTX underneath damaging management.”
He went on responsible the inclusion of FTX.US within the Chapter 11 chapter on John J. Ray III, a restructuring lawyer who assumed the position of FTX CEO after the chapter submitting. SBF claimed that “American prospects have been protected, at the least till Mr. Ray’s staff took over.”
Ray, alternatively, has been very crucial of the previous FTX CEO and his administration expertise. In his testimony for the FTX investigation listening to, Ray has mentioned that in all his years of working as a restructuring lawyer, he has by no means seen such an “utter failure of company controls at each degree of a company, from the shortage of economic statements to an entire failure of any inner controls or governance in any respect.”
Within the leaked doc, SBF additionally blamed the inclusion of FTX.US in Chapter 11 on the chapter regulation agency Sullivan & Cromwell. Whereas Bankman-Fried himself signed the chapter paperwork, he claimed the regulation agency pressured him to file Chapter 11 paperwork and wrote:
“I’ve 19 pages of screenshots of Sullivan & Cromwell, Mr. Miller, and others I consider have been influenced by them, all despatched over a two-day interval, pressuring me to rapidly file for Chapter 11.”
SBF additionally attacked the overall counsel for FTX.US Ryne Miller, accusing him of being a part of the stress group that needed to incorporate the U.S.-based entity within the chapter submitting.
Associated: Hours earlier than his arrest, SBF denied being a part of ‘Wirefraud’ chat group
Other than Ray and his authorized aids, SBF was additionally going responsible Binance CEO Changpeng Zhao for what he claimed was “a month of sustained damaging PR on FTX.” He claimed that Binance knowingly signed the letter of intent to purchase out FTX, however they “by no means meant to undergo with the deal.”
