Bankman-Fried says lawyers pressured him to name new CEO -testimony

Illustration shows FTX logo and representation of cryptocurrencies
Representations of cryptocurrencies are seen in front of displayed FTX logo in this illustration taken November 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Dec 12 (Reuters) - FTX founder Sam Bankman-Fried said he was pressured into nominating John Ray as chief executive of the crypto exchange in early November by Sullivan and Cromwell lawyers who were advising his firm at the time, according to a draft of his testimony to Congress seen by Reuters.

Shortly after Bankman-Fried agreed to nominate Ray, he received a "potential funding offer for billions of dollars to help make customers whole," Bankman-Fried wrote. But by then he was told it was too late to rescind the move.

Bankman-Fried, who was arrested earlier on Monday in the Bahamas, could not be reached for comment. Sullivan and Cromwell, FTX and John Ray were not immediately available for comment.

Reporting by Angus Berwick; Writing by Paritosh Bansal; Editing by Tom Hogue

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