SBF Congressional Testimony: Current CEO and Bankruptcy Law Firm Attempting to Obtain Huge Fees from FTX Bankruptcy

ChainCatcher message, based on a draft testimony prepared by FTX founder Sam Bankman-Fried (SBF) to be submitted to Congress, highlights that SBF sent five emails to FTX's new CEO and Chief Restructuring Officer John J. Ray III, but received no response; previously, many people (including FTX.US General Counsel and former Sullivan & Cromwell partner Ryne Miller) pressured SBF to quickly file for Chapter 11 bankruptcy.

SBF stated that John J. Ray III and the law firm managing the bankruptcy, including Sullivan & Cromwell, are trying to extract huge fees from the FTX bankruptcy. SBF also devoted seven pages detailing instances of John J. Ray III and his team spreading false and inaccurate information about the company he founded.

Additionally, SBF claimed that FTX did not have a risk management team; although FTX International had a team dedicated to finance and many other business areas, there was no team specifically responsible for risk management or user position monitoring. Potential investors signed a Letter of Intent (LOI) to restructure capital for the exchange. (Forbes)