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A doc posted on Sam Bankman-Fried’s X account claims the defunct FTX crypto trade was by no means bancrupt and that its attorneys’ choice to position it into chapter 11 value buyers $66 billion.
The doc, which says it was written by Bankman-Fried and his workforce, argues that the trade confronted solely a brief liquidity crunch that was “on observe to be resolved by the top of the month” earlier than outdoors counsel intervened. It accuses Sullivan & Cromwell and former FTX executives of coordinating to grab management of the corporate.
The doc says that attorneys had been “closely incentivized” to push FTX into chapter 11 so they might oversee its property, a transfer it says derailed restoration efforts. It added that prospects may have been repaid “in full, in variety,” with $111 billion left for buyers if the trade had continued working.
“The attorneys then rapidly launched a marketing campaign guilty Bankman-Fried for the chapter they brought on,” the doc stated. “FTX was by no means bankrupt, even when its attorneys positioned it into chapter 11.”
[SBF says:]
That is the place the cash went. https://t.co/HVRwEw5Z1k https://t.co/5DrA13L5YE pic.twitter.com/O6q77DvmTn
— SBF (@SBF_FTX) October 31, 2025
Doc Says Attorneys Went Behind SBF’s Again
Bankman-Fried and his workforce alleged that Sullivan & Cromwell teamed up with Ryne Miller, who was the final counsel of FTX and a former companion at Sullivan & Cromwell, in addition to FTX US Derivatives CEO Zach Dexter, to “wrest management of FTX.”
Certainly one of Sullivan & Cromwell’s attorneys, John J. Ray III, then positioned FTX and Alameda “into an omnibus Delaware chapter,” in keeping with the doc.
“As soon as FTX grew to become a Debtors’ property that they managed, the attorneys may pay themselves, at their very own discretion, out of FTX’s billions of {dollars},” they stated.
After taking management of FTX, Sullivan & Cromwell “initiated the prosecution towards Sam Bankman-Fried, going behind his again,” even whereas he was nonetheless a shopper of the legislation agency, the doc added.
FTX Making $3M A Day When Shuttered, Doc Says
The doc claims that when Sullivan & Cromwell’s legal professional shut down FTX, the trade was making $3 million per day and $1 billion per yr.
Through the liquidity disaster on the time, Bankman-Fried and his workforce stated that FTX had additionally discovered offers representing $6-8 billion price of liquidity that was “backed by its fairness on brief discover.”
Regardless of that, the attorneys nonetheless deemed FTX a “nugatory ‘dumpster fireplace’” and shut it down instantly, the doc says.
That call, the workforce says, accounts for “roughly $66 billion of misplaced worth for buyers underneath at the moment’s market situations.”
Bankman-Pal and the workforce additionally famous that the trade held $7 billion price of FTX’s native FTT token, which they calculated can be price an estimated $22 billion at the moment.
FTT worth (Supply: CoinMarketCap)
Sullivan & Cromwell bought FTX’s holdings in Sui for slightly below $100 million, a stake that at the moment is price $2.9 billion, the workforce stated. FTX’s funding in Anthropic was bought for a $0.9 billion revenue and is price $14.3 billion now, it added.
The exterior authorized counsel bought stakes in Solana and Robinhood, which might now be price a number of billions of {dollars} every, the doc added.
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