Sam Bankman-Fried Publishes Document Claiming FTX Was Solvent

TLDR

• Sam Bankman-Fried claims FTX was “never insolvent.”

• He blames bankruptcy lawyers and CEO John J. Ray III for its downfall.

• The document argues FTX could have repaid customers in 2022.

• His family is lobbying for a Trump pardon as part of a PR campaign.

• Most experts dismiss the claims as an attempt to rewrite history.

Sam Bankman-Fried, the imprisoned founder of the collapsed crypto exchange FTX, has resurfaced online with a lengthy defense document. He claims the company “was never insolvent” and could have repaid customers in full.

The 15-page statement, posted on X, argues that bankruptcy lawyers—not bad management—were responsible for destroying what he describes as a solvent but illiquid company. He accuses them of “decimating” FTX’s assets through unnecessary filings and mismanagement.

FTX “Could Have Been Worth $136 Billion”

The document, dated September 30, includes detailed tables of hypothetical valuations. It claims that FTX and its trading arm Alameda Research held $25 billion in assets and $16 billion in equity when the company collapsed in November 2022.

According to Bankman-Fried, the company’s liquidity crisis could have been resolved within weeks if outside counsel hadn’t taken control. He alleges that bankruptcy teams sold assets below market value and discarded billions in native FTT tokens, reducing overall recoveries.

Legal and Political Motives

The post marks the latest phase in a broader public relations effort by the former crypto mogul. His parents and legal allies are reportedly lobbying for a presidential pardon from Donald Trump. They have enlisted attorney Kory Langhofer, known for ties to the Republican Party, and even arranged media outreach through conservative channels.

Prediction market traders on Kalshi currently give Bankman-Fried about a 10% chance of receiving a pardon. Still, his renewed push on social media appears designed to shift public opinion and portray himself as a victim of legal overreach.

During his trial, Bankman-Fried was barred from presenting financial evidence supporting his solvency claims. Prosecutors argued that he illegally used customer deposits to cover losses at Alameda, violating basic trust and risk controls.

FTX’s Real Financial Picture

Court filings tell a very different story. Evidence showed that Alameda had a secret exemption from FTX’s risk engine, allowing it to borrow billions in customer funds without collateral. When this was exposed, customers rushed to withdraw their money, leaving an $8 billion hole in the balance sheet.

FTX’s 2022 collapse wiped out around $200 billion in crypto market value and triggered a regulatory crackdown worldwide. Bankman-Fried was convicted in 2023 on seven counts of fraud and conspiracy and is now serving a 25-year sentence.

The new claims, while detailed, have yet to be verified by the bankruptcy estate or independent analysts. For now, Bankman-Fried’s defense appears more like an effort to rewrite the FTX narrative than a credible financial audit.

Summary: Sam Bankman-Fried claims FTX was solvent, blaming lawyers for its downfall, but evidence suggests otherwise.

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