FTX Founder Claims the Exchange Was “Never Bankrupt”

Sam Bankman-Fried has reignited controversy from prison, claiming that FTX was “never bankrupt” and that lawyers filed a “bogus” bankruptcy petition just hours after taking control of the company.

In a recent statement, Bankman-Fried argued that he never authorized a bankruptcy filing and alleged that legal advisors moved quickly to place FTX into Chapter 11 in order to extract value through legal fees.

He claims the decision was rushed, unnecessary, and not reflective of the company’s true financial position at the time.

What SBF Is Claiming

According to Bankman-Fried, FTX’s legal team assumed control and filed for bankruptcy roughly four hours later, despite his objections. He asserts that certain parts of the business, including FTX.US, were solvent and should have been preserved or sold as going concerns rather than folded into a broader bankruptcy process.

He further alleges that the bankruptcy process itself became a vehicle for “pilfering” remaining funds through extensive legal and administrative costs.

What Courts and Prosecutors Found

These claims sharply conflict with the findings presented in U.S. courts. Prosecutors and court-appointed administrators identified an approximately $8 billion customer shortfall, concluding that customer assets had been misused and were not available for withdrawal.

Bankman-Fried was later convicted on seven counts of fraud and conspiracy, including wire fraud and securities fraud, tied to the misuse of customer funds through affiliated entities. He is currently serving a 25-year federal prison sentence, reflecting the scale and severity of the misconduct established at trial.

Court records and testimony described FTX as lacking basic financial controls, reliable accounting, and accurate balance sheets, conditions that ultimately underpinned the bankruptcy filing and subsequent asset recovery process.

A Narrative Clash With Legal Reality

While Bankman-Fried continues to argue that the bankruptcy itself was illegitimate, the legal system has taken a different view. Judges and juries concluded that FTX was deeply insolvent at the group level, with customer liabilities vastly exceeding available assets.

The contrast highlights an ongoing divide between Bankman-Fried’s personal narrative and the conclusions reached through forensic accounting, court supervision, and criminal proceedings.

For now, the bankruptcy of FTX remains legally settled, even as its former CEO continues to contest the story from behind bars.

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