SBF Claims FTX Was Solvent Amidst Bank Run
Sam Bankman-Fried, founder of the bankrupt FTX exchange, claims that FTX was not insolvent but suffered a liquidity crunch. In a document dated September 30, 2025, he argues that panic withdrawals led to bankruptcy rather than a balance sheet deficit.
- Bankman-Fried asserts customers will receive between 119% and 143% of their owed funds, with 98% already repaid 120%.
- He claims FTX’s $8 billion liabilities remained intact, even after $1 billion in legal fees, leaving $8 billion in assets.
- The downfall is described as a "classic bank run" caused by panic-driven withdrawals, not fraud.
- SBF criticizes bankruptcy administrators for premature asset liquidation, which allegedly destroyed creditor value.
- Estimated holdings across FTX and Alameda included major positions totaling approximately $136 billion.
- Criticism arises over using US dollar payouts instead of crypto, denying creditors potential gains from market recovery.
- Despite SBF's defense, he has been convicted on seven counts of fraud and sentenced to 25 years in prison.
The crypto community largely rejects SBF’s claims, accusing him of trying to rewrite history and highlighting losses from payouts at depressed prices.