Legislation agency Sullivan & Cromwell has contradicted itself by claiming that shuttered cryptocurrency trade FTX.US is bancrupt, in response to former CEO Sam Bankman-Fried (also referred to as “SBF”) in a January 17 weblog put up that was shared on Twitter.
FTX US is solvent, because it at all times as been. https://t.co/XjcyYFsoU0 pic.twitter.com/kn9Wm9wxjl
—SBF (@SBF_FTX) January 18, 2023
The legislation agency was retained by the FTX Group to handle chapter proceedings for a number of of its associates, together with FTX Worldwide, Alameda Analysis, and FTX.US. However, Sam Bankman-Fried has said on a number of events that he believes FTX.US is solvent and shouldn’t have filed for chapter.
In an announcement filed with america Chapter Courtroom for the District of Delaware on January 17, Sullivan and Cromwell reiterated its assertion that FTX.US will not be creditworthy, stating: “The belongings recognized as of the date of the petition are considerably lower than the combination balances of third-party clients recommended by the FTX.US digital ledger.”
In his put up, Bankman-Fried denied this declare, stating that the legislation agency has contradicted itself:
“Later in the identical report, S&C reveals that FTX US has an extra $428 million in financial institution accounts, on high of the $181 million of tokens, which is about $609 million of whole belongings. […] due to this fact, FTX US had at the least $111 million, and possibly round $400 million, of extra money along with what was required to match buyer balances.”
The previous CEO concluded that “FTX.US is solvent. Shoppers should have entry to their funds.”
Bankman-Fried stepped down as CEO of FTX on November 11, 2022, and John J. Ray III was named the corporate’s alternative CEO. On December 13, Bankman-Buddy was charged with fraud by the US Securities and Alternate Fee in reference to the chapter of FTX. The SEC alleged that it “orchestrated a years-long fraud to cover FTX traders from […] the undisclosed diversion of FTX consumer funds to Alameda Analysis LLC, its personal cryptocurrency hedge fund.” He has pleaded not responsible and is presently awaiting trial.
After being launched on bail, Bankman-Fried started posting his weblog posts on substack on January 12, however many within the cryptocurrency group have been unimpressed together with his writing.
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