Key Takeaways:
Sam Bankman-Fried introduced in jail that FTX has by no means been bankrupt and he has not authorized the submitting for chapter in response to Chapter 11.He accused exterior attorneys who submitted a “bogus” doc to take management of the trade.These statements battle with the court docket’s judgement ruling billions of {dollars} of consumers shedding.
Sam Bankman-Fried is now again within the crypto information protection, with contemporary in-prison assertions that FTX was by no means bankrupt and shifting the duty of the trade to break down to attorneys who seized management in November 2022.
SBF Denies Chapter Submitting from Jail
In certainly one of his current remarks that he has posted via his X account, Bankman Fried didn’t declare himself to have ever declared chapter on behalf of FTX. In his opinion, authorized advisers took over the corporate and put it into Chapter 11 only a few hours later with out his consent.
He described the submitting as illegitimate and claimed it was used to empty worth from the property via authorized charges. Bankman-Fried insists FTX was nonetheless operational on the time and argues that the chapter course of itself brought on long-term harm to clients and the platform.
Agree with virtually all of this.
However FTX was by no means bankrupt. I by no means filed for it.
The attorneys took over the corporate and 4 hours later they filed a bogus chapter so they might pilfer it for cash. https://t.co/5YjqvPjFT3 pic.twitter.com/L7VWJK4Wny
— SBF (@SBF_FTX) February 10, 2026
As a result of U.S. federal inmates aren’t allowed unrestricted entry to social media, the posts are believed to have been relayed via intermediaries, corresponding to authorized counsel or associates.
Learn Extra: FTX Quietly Stakes $79M in Ethereum
Claims of Solvency and Liquidity Stress
Bankman-Fried’s core argument is that FTX confronted a short-term liquidity disaster slightly than insolvency. In line with him, the trade had adequate belongings to satisfy the duty of the purchasers, and the problems grew to become critical solely when the withdrawals elevated.
He has a number of occasions cited crypto holdings, corresponding to holding holdings of enormous token balances, as being proof that had time FTX may have remained afloat. To him, a well-organized winding down or additional operation would have implied extra expert buyer repayments.
Disputed Trial Narrative
Bankman -Fried and proponents imagine that they’d necessary proof omitted for use within the trial. They allege that the court docket restricted debate on solvency, the expectation of reimbursement of consumers and dependence on authorized recommendation. These arguments are disallowed by critics who level out that the fraud prices weren’t based mostly on the balance-sheet snapshots alone, however misuse of funds and intent.
Learn Extra: U.S. Calls for 12-Yr Jail Time period for Do Kwon After $40B Terra Crash Shook Crypto Markets
Courtroom Findings and the $8 Billion Hole
The prosecutors of the U.S. demonstrated proof that FTX used buyer deposits inappropriately, transferring them to the Alameda Analysis, which resulted within the formation of an approximate scarcity of 8 billion {dollars}. Bankman -Fried was discovered responsible of seven fraud and conspiracy counts by a jury, which resulted in serving a 25-year jail time period.
Courtroom paperwork reported that FTX was extremely bancrupt after suppressed liabilities emerged. Though the chapter property has since recouped vital belongings and collectors do anticipate receiving near one hundred pc again via future recoveries, judges have mentioned that future recoveries don’t alter the character of previous wrongdoing.
