SBF’s X Account Says FTX Was By no means Bancrupt—And FTT Would Be $22 Billion Right this moment – Decrypt

An account as soon as utilized by Sam Bankman-Fried, founder and former CEO of bankrupt crypto change FTX, posted a hyperlink to a doc on X late Thursday arguing the corporate was by no means bancrupt, echoing arguments raised at his trial years in the past.

The 14-page doc, supposedly written by the disgraced wunderkind and his crew, claims the change didn’t go bankrupt due to a sweeping scheme to commit fraud and misappropriate $10 billion in prospects’ funds, as a Manhattan jury discovered in 2023.

As a substitute, FTX confronted a “liquidity disaster” that was “on monitor to be resolved by the top of the month,” purportedly disrupted by “FTX’s exterior counsel,” who seized management. The doc goes on to say that “FTX was by no means bankrupt, even when its attorneys positioned it into chapter 11.”

The narrative echoed parts of an interview that Bankman-Fried gave behind bars in March, during which he instructed conservative political commentator Tucker Carlson, “there was sufficient cash” to pay again each creditor on the time that the change collapsed.

As FTX circled the drain in 2022, the corporate purportedly had $25 billion in belongings, together with $16 billion in “FTX fairness worth,” in opposition to $13 billion in liabilities, the doc claims.

The doc argues that had attorneys not offered off belongings that the corporate had invested in, FTX and sister agency Alameda Buying and selling would have holdings value an estimated $136 billion.

That may entail a $14.3 billion stake in synthetic intelligence startup Anthropic and a $7.6 billion funding in retail brokerage Robinhood, amongst 12 different belongings.

That features XRP-linked fintech Ripple and Bitcoin mining agency Genesis Digital Property. The FTX Restoration Belief filed a lawsuit in opposition to Genesis in Digital Property final month, looking for to get well $1.15 billion it claims was misappropriated by Bankman-Fried.

If FTX and Alameda nonetheless existed, the change’s FTT token can be value almost $22 billion, the doc claims. Prosecutors mentioned at Bankman-Fried’s legal trial that FTT, amongst different belongings, was used to prop up Alamada.

Two weeks in the past, conservative activist Laura Loomer claimed on X that there’s a “large and well-funded” effort to influence U.S. President Donald Trump to pardon Bankman-Fried. 

Binance founder Changpeng Zhao, a former rival of Bankman-Fried’s who helped spur FTT’s implosion, has since been pardoned by Trump after violating U.S. anti-money laundering legal guidelines on the world’s largest crypto change.

Earlier than sentencing Bankman-Fried to 25 years in jail in 2024, U.S. District Choose Lewis Kaplan mentioned, “A thief who takes his loot to Las Vegas and efficiently bets the stolen cash isn’t entitled to a reduction on his sentence.”