Former FTX CEO Sam Bankman-Fried, often known as SBF, was arrested on Dec. 12, a day earlier than he was scheduled to testify remotely earlier than Congress. A duplicate of his testimony obtained by Forbes reveals that his disgraced CEO deliberate in charge everybody however himself for the downfall of his $32 billion empire phantasm. I’m emphasizing.
SBF continued the identical rhetoric about international cryptocurrency change sister firm FTX.US in his testimony. Regardless of this, the US-based firm nonetheless claimed to be “absolutely solvent.” Bankman Freed wrote:
“I want I hadn’t clicked the Docusign button at 4:30 a.m. and left a part of FTX underneath damaging management.”
He additionally blamed the inclusion of FTX.US in Chapter 11 of the chapter regulation on restructuring lawyer John J. Ray III, who took over the position of FTX’s CEO after submitting for chapter. SBF claimed that “American prospects had been protected, at the least till Ray’s workforce took over.”
Ray, then again, is very important of the previous FTX CEO and his administration expertise. I’ve by no means seen a “full failure of company management in any respect ranges of the group, from an absence of A whole failure of inner controls and governance. ”
Within the leaked paperwork, SBF additionally blamed chapter regulation agency Sullivan & Cromwell for together with FTX.US in Chapter 11 of the Chapter Code. Whereas Bankman-Fried himself signed the chapter papers, he claimed he was pressured by his regulation agency to file Chapter 11 papers, writing:
“There have been 19 pages of screenshots of Sullivan & Cromwell, Mr. Miller, and others believed to have been influenced by them, all despatched over the course of two days, and I used to be underneath stress to submit Chapter 11 ASAP. I received it.”
SBF additionally attacked FTX.US Ryne Miller’s normal counsel, accusing it of being a part of a stress group to incorporate the US-based firm in its chapter submitting.
Associated: Hours earlier than arrest, SBF denied being a part of ‘Wirefraud’ chat group
Except for Lay and his authorized help, SBF additionally supposed to denounce Binance CEO Changpong Zhao for what he claimed was “a month of persistent unfavorable PR on FTX.” . He claimed that Binance intentionally signed a letter of intent to amass FTX, however they “didn’t intend to finish the transaction.”
