In a newly disclosed document, former FTX CEO Sam Bankman-Fried insists that his fallen crypto empire was not insolvent and that customer funds could have been repaid in full — if not for the intervention of the bankruptcy team.
SBF Argues FTX Faced a Liquidity Crunch, Not Insolvency
Sam Bankman-Fried, currently serving a 25-year prison sentence for fraud and conspiracy, has again challenged the official narrative of FTX’s collapse. In a 15-page document dated September 30, the disgraced founder asserted that FTX and Alameda Research held $25 billion in assets and $16 billion in equity value when the liquidity crisis hit in November 2022, more than enough to cover $8 billion in customer withdrawals.
“The crisis FTX faced in November 2022 was a liquidity crisis — a sudden shortage of cash,” the document read. “It was on track to be resolved by the end of the month — that is, until FTX’s external counsel seized control.”
Bankman-Fried claimed that outside lawyers and newly appointed CEO John J. Ray III forced the exchange into bankruptcy, a move he said “decimated” the company and reduced creditor recoveries.
Accusations Against the Bankruptcy Team
According to the filing, the bankruptcy lawyers allegedly misrepresented FTX as ‘hopelessly insolvent’, discarded $7 billion in FTT tokens, and sold assets below market value. The document accused the debtors of paying nearly $1 billion in fees to consultants, which Bankman-Fried claimed drained funds that could have gone to customers.
“Today, those assets together with the FTX equity held by Alameda would be worth approximately $136 billion — if the Debtors hadn’t decimated the company,” the document stated.
The FTX bankruptcy estate has not publicly responded to the claims.
Ongoing Legal and Political Battle
FTX’s 2022 collapse remains one of the largest scandals in crypto history, wiping out nearly $200 billion in market capitalization. Court filings revealed that Alameda Research had a “secret backdoor” to borrow unlimited customer funds from FTX — a central argument in Bankman-Fried’s conviction.
Despite his sentencing, Bankman-Fried continues to maintain his innocence. His family has launched a campaign seeking clemency from President Donald Trump, arguing that his prosecution was politically motivated.
Earlier this month, he posted on social platform GETTR, alleging that his arrest was retaliation by the Biden administration after he began donating to Republican candidates.
A Divided Legacy
While industry experts remain skeptical of Bankman-Fried’s solvency claims, his document reignites debate over whether FTX’s downfall stemmed from mismanagement, malice, or miscalculation.
As one blockchain analyst noted, “Even if FTX had assets on paper, liquidity and transparency are what truly define solvency — and both were missing.”
The controversy underscores how the collapse of one of crypto’s biggest exchanges continues to shape perceptions of trust, regulation, and accountability in digital finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.