Former FTX CEO Sam Bankman-Fried (SBF) has been pressured by law firm Sullivan & Cromwell to file for bankruptcy of the FTX company during his upcoming testimony before the US House Financial Services Committee. I claim. Doing so was a potential legal and consultancy expense.
SBF was scheduled to testify before the US House Financial Services Committee on December 13, but was arrested in the Bahamas on December 12 at the request of the US government.
Forbes has obtained a draft of Bankman-Fried’s planned testimony, It was published It’s literally.
In the testimony, the SBF stated that under “Chapter 11,” shortly after John Ray signed the nomination to take over FTX as CEO, “billions of dollars will be invested to help complete customers.” It claims to have received an “offer”.
SBF says he instructed his defense counsel to revoke the documents shortly after that proved impossible. The testimony also reports that “Sullivan’s and Cromwell’s attorneys had filed it.” [SBF’s] apart from [SBF’s] instruct not to. “
The SBF claimed that it was “approximately six hours later” that Sullivan & Cromwell turned in Wray’s nomination papers against his wishes.
The SBF then alleged that Ray filed for Chapter 11 for all FTX entities because it “suspended customer access and withdrawals, including FTX US, a fully solvent U.S. entity.” .
Bahamas Attorney General Ryan Pinder issued an official statement, according to testimony.
“The prospect of multi-million dollar legal and consultant fees may be driving both. [the Chapter 11 team’s] Legal strategy and its immoderate remarks. “
SBF concludes page 9 of his testimony with a screenshot revealing a message from FTX General Counsel Ryne Miller, stating that “Out of FTX.com cash” $4 million was sent to “SullCrom” to secure an agent. I asked for your consent to send dollars.