Shocking: FTX’s Bankman-Fried Claims Exchange Was Never Insolvent

Sam Bankman-Fried, the former CEO of the failed cryptocurrency exchange FTX, has sparked considerable debate with a recent post on his X account. In the post, he made strong claims about the financial health of his company. He argued that FTX was never really out of money during its 2022 collapse.

SBF Blames Bankruptcy Lawyers for FTX Collapse

In a recent post, Bankman-Fried shared a detailed 15-page document that he had created with his legal team. It states that 98% of creditors received repayments of between 120% and 143% of their claims. He points out that while approximately $8 billion has been repaid to creditors, the exchange still has an estimated $8 billion in assets. 

Bankman-Fried challenges the common belief about FTX’s collapse. He strongly argues that the company did not crash due to massive fraud and mismanagement, as concluded by prosecutors.

SBF claims that when FTX collapsed in November 2022, it had about $14.6 billion in assets. He believes the money could have fully paid back all customers. Rather, he blames the crash on poor legal management, rather than on the company’s financial health. SBF also maintains that it was a liquidity crisis, rather than outright bankruptcy, that led to the company’s downfall. 

Experts Criticize SBF’s Claims 

SBF’s document explains that customers are receiving the dollar equivalent of their claims based on the petition date, rather than their crypto assets. For example, if a customer was owed one bitcoin, their claim was adjusted to approximately $17,000, which was the value of 1 bitcoin on November 11, 2022, when FTX filed for bankruptcy. 

Meanwhile, Bankman-Fried’s claims have, however, been met with strong backlash. Critics, such as ZachXBT, are very concerned about the fairness of the repayment system. They pointed out that the repayments are based on the value of cryptocurrencies at the time the company collapsed.

The blockchain investigator argued that FTX’s repayments do not reflect current market values, which have increased in value. He maintains that the outdated approach resulted in substantial losses for many FTX account holders, who held assets such as SOL (Solana) or BTC. At the same time, the estate seems to have extra funds.

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