Sam Bankman-Fried Claims FTX Was Never Bankrupt, Blames Lawyers

Sam Bankman-Fried has made a new claim from prison about the collapse of FTX. The former exchange CEO says the company was never bankrupt. He also claims he never approved the Chapter 11 filing in November 2022.

According to recent statements, Sam Bankman-Fried argues that lawyers rushed the filing to take control of the company. He says the move happened just hours after he stepped down. The comments come while he serves a 25 year sentence for fraud linked to the FTX collapse. The claim quickly spread across crypto circles. It also sparked a brief movement in the FTT token, though the reaction stayed limited.

Bankman-Fried’s Main Argument

Sam Bankman-Fried says FTX was solvent at the time of the collapse. He claims the exchange held enough assets to cover its liabilities. According to his version, the problem was a short term liquidity crunch caused by mass withdrawals. He also says he never signed or approved the bankruptcy filing. Instead, he claims lawyers and advisers took control. They filed the petition themselves. 

He argues that the bankruptcy process generated massive legal fees. In earlier filings, he pointed to large crypto holdings, including Solana tokens. He claimed those assets exceeded customer obligations at the time. But critics say these arguments ignore key details about customer fund misuse.

What Happened During the FTX Collapse

FTX collapsed in November 2022. After a wave of customer withdrawals. Investigations later showed that the exchange had mixed customer funds with Alameda Research, its sister trading firm. During the criminal trial, prosecutors said about $8 billion in customer funds were misused. A jury convicted Sam Bankman-Fried on seven counts of fraud and conspiracy. The court later sentenced him to 25 years in prison.

Meanwhile, the bankruptcy process recovered large amounts of assets. Many creditors now expect to receive close to full repayment and in some cases more, based on 2022 prices. Still, users lost access to their funds during a major bull market.

Mixed Reactions From the Crypto Community

The latest claims have split opinions. Some supporters argue the trial overlooked evidence about FTX’s solvency. They say the bankruptcy process may have moved too quickly. But many analysts reject that view. On-chain investigators and industry figures say the claims ignore clear evidence of misused customer funds. Courts have also upheld the fraud conviction so far. Some reports note that appeals judges previously showed doubt about the solvency arguments. Because of that many observers see the new statements as part of a broader appeal strategy.

Part of an Ongoing Legal Fight

Sam Bankman-Fried’s comments appear tied to his ongoing appeals. His legal team has argued vital evidence was kept from the trial. They also say he relied largely on legal advice during the crisis. Nonetheless, most legal experts see little prospect of a complete reversal. Courts have always upheld the initial verdict and bankruptcy findings. For now, the statements add another chapter to the long FTX saga. They also keep debate alive about how the collapse unfolded and who made the final decisions.

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