FTX co-founder and former chief executive Sam Bankman-Fried is not living in reality with his claims that the bankruptcy of his cryptocurrency exchange was not necessary and that he did not steal from customers, new CEO John Ray said Wednesday.

"Mr. Bankman-Fried continues to live a life of delusion," Ray wrote in a Manhattan federal court filing ahead of the former billionaire's sentencing set for next week. "There should be no delusion that because assets have increased in value or that the professionals have been able to recover funds and assets taken or stolen from the estate, that there was no need for the Chapter 11 cases."

Ray made the comments in a victim response statement after a filing from Bankman-Fried's defense team the day before, when the attorneys requested U.S. District Judge Lewis Kaplan give their client a lenient sentence following his conviction for stealing $8 billion from customers of the now-bankrupt exchange, claiming that FTX's clients would have most of their funds returned.

SAM BANKMAN-FRIED ASKS FOR LENIENT SENTENCE, POINTS TO FTX FUND RECOVERY

Ray, who helped manage Enron after the energy trader's 2001 bankruptcy, said Bankman-Fried's theft meant many accounts had fewer assets than customers wanted to believe.

He also said FTX equity investors, whom Bankman-Fried was also convicted of conspiring to defraud, were unlikely to recover significant sums in the bankruptcy.

PROSECUTORS WANT A 40- TO 50-YEAR PRISON SENTENCE FOR SAM BANKMAN-FRIED

Bankman-Fried was found guilty in November on two counts of wire fraud and five conspiracy counts. The charges carry a maximum sentence of 110 years behind bars, and his sentencing is scheduled for Thursday. 

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Prosecutors are seeking a sentence of 40 to 50 years in prison, while the defense is arguing a 5¼- to 6½-year prison term would be appropriate.

FOX Business' Landon Mion and Reuters contributed to this report.