Sam Bankman-Fried claims FTX was never insolvent, asserting sufficient assets always existed to repay customers in full. A 14-page document shared on his X account argues the exchange’s collapse stemmed from external disruptions rather than fraud, with repayments now projected at 119% to 143% of claims.
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FTX solvency dispute: Bankman-Fried’s document refutes insolvency, highlighting $16 billion in assets versus $8 billion in claims as of November 2022.
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Legal counsel role: Accusations against Sullivan & Cromwell for sabotaging recovery efforts and initiating bankruptcy proceedings.
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Repayment status: 98% of creditors have received 120% of claim values in USD equivalents, but miss out on crypto gains like Bitcoin’s rise from $17,000 to $109,000.
Discover Sam Bankman-Fried’s bold claim that FTX was never insolvent amid ongoing repayments. Explore the document’s arguments on assets, legal missteps, and creditor impacts—read now for key crypto bankruptcy insights.
What Does Sam Bankman-Fried Claim About FTX Insolvency?
Sam Bankman-Fried, founder of the collapsed cryptocurrency exchange FTX, has asserted through a detailed 14-page document that FTX was never insolvent. Shared on his X account, the document argues that the platform maintained enough assets to fully repay customers in kind at the time of its November 2022 crisis and continues to do so today. It challenges the narrative of fraud-driven collapse, pointing instead to external interventions that disrupted liquidity resolutions.
How Did Legal Counsel Influence FTX’s Bankruptcy?
The document accuses FTX’s external legal firm, Sullivan & Cromwell, of seizing control in November 2022 and pushing the company into bankruptcy. According to the claims, attorneys John J. Ray III, Ryne Miller, and Zach Dexter prioritized bankruptcy filings, which allowed them to retain the firm as counsel and draw fees directly from FTX’s funds. This move, the paper states, prevented the exchange from resolving its issues independently.
Supporting this, the document details how Sullivan & Cromwell contacted federal prosecutors on November 9, 2022, while Bankman-Fried was still CEO, raising alarms about finances. This cooperation allegedly facilitated his arrest and guilty pleas from executives like Caroline Ellison and Gary Wang. Financial data cited shows FTX generating $3 million daily and holding $1 billion in annual revenue at shutdown, underscoring missed opportunities for recovery. Experts in bankruptcy law, such as those referenced in reports from the U.S. Department of Justice, have noted similar patterns where legal incentives can accelerate filings, though without direct endorsement of these specific accusations.
[SBF says:]
This is where the money went. pic.twitter.com/O6q77DvmTn
— SBF (@SBF_FTX) October 31, 2025
FTX’s asset portfolio included valuable stakes in ventures like Anthropic, an AI startup, and Robinhood, a brokerage platform. The Anthropic investment was sold for a $0.9 billion profit but could now be worth $14.3 billion based on current valuations. Similarly, holdings in the Sui blockchain project were offloaded for under $100 million, yet reached $2.9 billion in market value post-debut. These sales, per the document, represent significant losses in potential gains due to hasty bankruptcy actions.
At its height, FTX served over seven million customers who deposited approximately $20 billion. The November 2022 withdrawal surge led to account freezes and bankruptcy filing, leaving $8 billion owed to users. For nearly two years, recovery efforts yielded minimal progress until recent distributions.
Frequently Asked Questions
Has FTX Fully Repaid Its Creditors According to Sam Bankman-Fried’s Claims?
Bankman-Fried’s document states that 98% of creditors have received 120% of their petition-date claim values, with the estate holding $8 billion after $8 billion in payouts and $1 billion in fees. Full repayments are expected at 119% to 143%, though in USD equivalents rather than original crypto assets, addressing liquidity but not market appreciation.
What Are the Implications of FTX Repayments in USD Instead of Crypto for Investors?
FTX customers owed assets like 1 Bitcoin at bankruptcy received about $17,000 based on its November 11, 2022, value, not the current $109,000 price. This structure, as noted in a policy memo by Deputy Attorney General Todd Blanche, prevents investors from benefiting from post-crisis market surges, potentially leading to substantial opportunity costs during crypto’s rally.
Key Takeaways
- FTX Solvency Assertion: The document maintains FTX held sufficient assets—around $16 billion—to cover all claims without insolvency, challenging prosecutorial conclusions.
- Legal Interference Claims: Sullivan & Cromwell is accused of disrupting recovery by initiating bankruptcy, contacting prosecutors, and profiting from proceedings, per detailed timelines.
- Creditor Recovery Insights: While 98% have been reimbursed at 120%, USD-based payouts mean missing crypto gains; monitor estate distributions for final resolutions.
Conclusion
Sam Bankman-Fried’s document reignites debate over FTX insolvency, emphasizing ample assets and external legal disruptions as key factors in the exchange’s downfall rather than inherent fraud. With repayments underway at enhanced rates but limited to USD equivalents, creditors face trade-offs amid FTX bankruptcy proceedings. As the crypto sector evolves, these claims highlight the need for transparent governance—stay informed on developments to navigate future investment risks effectively.
