From behind bars, Sam Bankman-Fried (SBF) unleashed a fiery thread claiming FTX was always solvent, blaming bankruptcy lawyers for its doom. Posting on X, SBF linked a 14-page Google Doc detailing that FTX had $15 billion in assets while filing for bancruptcy, which would have been enough to repay all 7million customers. The timing of the post seems uncanny, as his appeal looms for hearing on November 4.
With the tweet, Bankman-Fried is effectively reframing the foundational account of his case. His argument is that the collapse wasn’t because of mis-management, fraud or lack of funds, but because of legal advisers’ actions. Sam has supported his claims with a 2023 presentation to creditors that listed things like crypto, venture investments, and real estate.
“It was on track to be resolved by the end of the month—that is, until FTX’s external counsel seized control. FTX was never bankrupt, even when its lawyers placed it into bankruptcy,”
Sam Bankman Fried
The report said that after two years, the estate announced customers would be repaid between 119% and 143% of what they were owed. SBF noted that 98% of creditors have already received 120%, and even after paying $8 billion in claims and $1 billion in legal fees, there’s still $8 billion left. He argues this shows FTX always had enough to repay customers.
The Collapse of FTX: A Recap
FTX filed for bankruptcy in November 2022 amid a liquidity crisis triggered by rapid customer withdrawals of close to $20 billion and revelations about hidden loans between FTX and Alameda Research. FTX had then filed Chapter 11 owing $8 billion, after sister firm Alameda Research gambled user funds on bad bets. SBF was convicted in 2023 on fraud and conspiracy charges and sentenced to 25 years.
These solvency claims are central to overturning the 25-year sentence. This narrative may factor into his appeal, where his defence wants to challenge the legitimacy of the bankruptcy process and the culpability of those who took over the estates.
If SBF’s claims don’t hold up, this public posture might backfire and only reinforce perceptions of his deflection on the matter rather than accountability. Interestingly, prediction market odds in favour of SBF’s recieving a presidential pardon surged to 16% a day after President Trump pardoned former Binance CEO Changpeng Zhao ‘CZ’ in a separate fraud case.