FTX creditor: John Ray concealed FTX holdings of 55 million SOL! Resulting in losses of over US$10 billion

This site (120BtC.coM): Since its collapse in November 2022, the restructuring team of bankrupt cryptocurrency exchange FTX has been actively raising funds to repay creditors, but FTX creditor Sunil Kavuri has been I have considerable opinions on the FTX restructuring team and the New York law firm Sullivan & Cromwell (S&C) responsible for handling the FTX bankruptcy case.

Sunil Kavuri publicly supported the U.S. senator’s request on the 7th to ask a judge to appoint an independent reviewer to investigate S&C. He alleged that since S&C took over the FTX bankruptcy case, it sold assets to parties with conflicts of interest at a substantial discount. Proposing the FTX2.0 plan and other actions have caused FTX to lose assets worth US$10 billion, even exceeding the scale of FTX's losses before FTX founder SBF filed for bankruptcy.

Sunil Kavuri mentioned that just because FTX sold its SOL holdings at a super cheap price of $64, FTX creditors lost billions of dollars in value.

Another attack on the restructuring team of S&C and FTX

Sunil Kavuri once again targeted the restructuring team of S&C and FTX on the 28th. He tweeted a warning that S&C may propose a plan next. The FTX plan will include two major clauses, namely, exempting S&C from any crimes, and putting John Ray, the current CEO of FTX, as a "puppet" in charge, with no accountability.

In Sunil Kavuri’s view, John Ray is not a victim, but before he was sentenced by SBF, he submitted a victim impact statement to the court, which was full of misinformation and even lies. FTX not only failed to help creditors Restoring assets and deliberately destroying the value of assets that creditors can recover, FTX creditors have suffered losses of more than $10 billion.

Sunil Kavuri listed John Ray’s charges and pointed out that in John Ray’s statement submitted to the court, he stated that when he took over FTX, FTX only had 105 Bitcoins, but he did not mention that FTX There are still about 55 million SOL on hand.

Sunil Kavuri also pointed out that due to Alameda’s backdoor, SBF transferred funds out of FTX, which meant that FTX’s cryptocurrencies were not within FTX, which is why creditors were unable to get the cryptocurrencies back before the bankruptcy. S&C, which provides services to FTX, has long known about the existence of backdoors.

Therefore, Sunil Kavuri stated that he will vote 100% against any compensation plan, FTX creditors should do the same, and all FTX co-conspirators should be held accountable.

S&C was accused of conflict of interest

Previously, FTX creditors filed a class action lawsuit against S&C last month, alleging that S&C served as FTX’s consultant before its bankruptcy and understood the operation of the exchange. And ultimately supported its fraudulent behavior, so it must bear part of the responsibility for the collapse of FTX.

Two law professors at Temple University and the University of Pennsylvania, Jonathan Lipson and David Skeel, also published a paper last month alleging that S&C used "deceptive tactics" to seize control of FTX from SBF and from Seeking private interests in Chapter 11 bankruptcy proceedings. If S&C waits a few more days before assisting FTX in filing a Chapter 11 bankruptcy application, then SBF may be able to obtain new funds and avoid bankruptcy.

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