Sam Bankman-Fried Claims FTX Was ‘By no means Bancrupt’ — Right here’s What Occurred In His View

Sam Bankman-Fried says FTX at all times had sufficient property to repay prospects, claiming the trade confronted a liquidity crunch quite than a real stability sheet hole, and that present recoveries show his level.

In a doc dated Sept. 30, 2025, Bankman-Fried and his crew contend the $8b owed to prospects on the time of FTX’s Nov. 2022 chapter “by no means left.”

He writes that prospects will get between 119% and 143% of what they have been owed on the time of FTX’s chapter, with about 98% already repaid 120%. After protecting $8b in claims and $1b in authorized charges, the property nonetheless holds round $8b. The doc states, “In actual fact, FTX was by no means bancrupt.”

“There have at all times been sufficient property to repay all prospects—in full, in type—each in November 2022, and as we speak,” Bankman-Fried wrote.

SBF Portrays FTX Collapse As A Traditional Financial institution Run Triggered By Panic Withdrawals

He frames the collapse as a basic run on the financial institution. Withdrawals spiked to billions in days, the paper says, whereas the corporate sought asset gross sales and financing and continued to generate buying and selling charges. The authors declare offers have been in movement to bridge the shortfall by late Nov. 2022 and that buyer withdrawals have been resuming.

The narrative disputes the chapter crew’s early statements about shortfalls. It argues FTX and Alameda property exceeded liabilities in 2021 and thru mid-2022, and that the property’s personal Jan. 2023 supplies confirmed property roughly equal to or above buyer claims as of the submitting date.

Additional, SBF and his crew blame subsequent choices in chapter for worth erosion and the lengthy delay in payouts.

Solana, Sui And Anthropic Cited As Property That Soared After FTX Liquidations

Bankman-Fried’s camp factors to asset gross sales they are saying have been poorly timed. Stakes in tokens and personal corporations are listed with what the authors name materially greater estimated values as we speak.

They cite Solana, Sui and Anthropic amongst positions that will have been price much more if held by the market rebound, whereas alleging insider-favored pricing and heavy skilled charges drained the property.

Additionally they criticize dollarized payouts. Collectors are receiving the US greenback worth of their crypto as of Nov. 11, 2022, not the cash themselves. The paper argues this method denies prospects the upside from the next rally, and says the years lengthy wait compounded the hole between petition date costs and present ranges.

FTX As soon as Valued Above $30B Earlier than Speedy Unraveling In 2022

Context issues. FTX was as soon as valued above $30b with greater than 1,000,000 customers.

Its fall adopted revelations about intertwined danger between the trade and Alameda, a rush of withdrawals and a failed rescue.

After a 2023 trial, Bankman-Fried was convicted on seven counts, and in March 2024 acquired a 25-year sentence with an $11b forfeiture, a judgment he’s interesting.

The property has mentioned it maximized recoveries, pointing to asset monetization and litigation wins that funded rising payout projections. Collectors, particularly smaller account holders, have targeted on pace and certainty of money, even when that meant giving up crypto upside.

Shareholders, against this, are recovering solely a fraction of invested capital.

FTX Restoration Units Uncommon Precedent For Crypto Bankruptcies Worldwide

For crypto markets, close to full restoration of buyer funds based mostly on petition-date values marks a uncommon consequence in a significant trade collapse. The controversy over whether or not repayments ought to have been made in crypto as a substitute of {dollars}, and whether or not the property bought property too early, will stay a case research in unwind a buying and selling platform throughout a unstable bull cycle.

Bankman-Fried’s doc seeks to recast that historical past. “The reply is that they by no means left,” it says of buyer funds, and it concludes that FTX may have paid everybody in 2022 if management had not shifted to exterior counsel and the court docket course of.

The courts will resolve if that declare holds up, but the dimensions of the recoveries has already shifted how insolvency is known in crypto collapses.

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