FTX Founder Sam Bankman-Fried Blames New CEO In His Latest Statement!

Currently in bankruptcy cryptocurrency Sam Bankman-Fried, founder of the stock exchange FTX, said in an interview with The Block that the statements of new FTX CEO John J Ray III were “false”.

Restructuring expert Ray, in a bankruptcy statement on Nov. 17, criticized poor record keeping and unreliable financial information at FTX, which filed for Chapter 11 bankruptcy in Delaware a week earlier.

Sam Bankman-Fried: “Phrases Used That I Know Are Wrong”

In an interview published Monday, Bankman-Fried referred to “legally recorded statements that, in his view, he knew were false.”

“There have been many statements made in the legal record that I know are false. I don’t know if they were deliberately lying or if it was an honest mistake as they didn’t consult anyone who knew where these recordings were. But there have been cases where X, Y, or Z were said to not exist. And I’m looking at a copy of X, Y, Z and none of my emails have been returned.”

“If you try to take over a company and refuse to speak to anyone in the management of that company, I think it’s pretty hard to know where the relevant data, including company books and documented policies, will be in a short period of time,” said Bankman-Fried.

This comment came in response to a question about the new CEO’s comments about weak financial controls.

“I object to the claim that there is zero financial control,” Bankman-Fried said. I totally agree that there are places with very poor controls and those places are critical and it’s really bad.” said.

In his earlier testimony, Ray said he had never seen “corporate controls fail so badly and reliable financial information so lacking” as he had seen in his 40-year career as head of FTX.

Ray said the company doesn’t have proper books, records, or security checks for its digital assets, or even a complete list of staff on the payroll.

*Not investment advice.