Sam Bankman-Fried has resurfaced with a brand new assertion asserting that FTX and Alameda Analysis had been by no means bancrupt, arguing that each companies may have repaid clients in full earlier than being compelled out of business.
In a 15-page doc dated September 30, the convicted FTX founder claims that, on the time of the November 2022 collapse, the alternate held $25 billion in property in opposition to $8 billion in withdrawal requests, which he says mirrored a brief liquidity crunch — not insolvency. Bankman-Fried insists the scenario may have stabilized by the tip of the month “had FTX’s exterior counsel not seized management.”
Allegations Towards Chapter Group
The assertion accuses the FTX chapter legal professionals and present CEO John J. Ray III of deliberately misrepresenting the corporate’s funds to justify submitting for chapter. In accordance with Bankman-Fried, the brand new administration “decimated” the enterprise, discarding $7 billion in FTT, promoting property under market worth, and paying near $1 billion in authorized and consulting charges.
The doc argues that if FTX’s fairness and tokens had been preserved, their mixed worth right this moment would exceed $136 billion. Bankman-Fried claims the legal professionals had been “incentivized” to magnify the agency’s insolvency for private achieve, portraying FTX as a “dumpster fireplace” regardless of its alleged fairness reserves.
Persevering with Protection and Clemency Efforts
FTX’s 2022 implosion stays some of the consequential failures in crypto historical past. Proof from the trial revealed that Alameda had a “backdoor” exemption inside FTX’s danger controls, permitting it to borrow limitless buyer funds with out collateral — a loophole that in the end led to an $8 billion shortfall.
Following his fraud and conspiracy conviction in 2023, Bankman-Fried was sentenced to 25 years in jail. He continues to attraction the decision whereas looking for clemency from President Donald Trump, who has beforehand pardoned Ross Ulbricht and Changpeng Zhao.
In current posts on GETTR, Bankman-Fried alleged that his arrest was politically motivated, claiming he turned a goal after redirecting his political donations towards Republican candidates.
