- SBF said that FTX was never bankrupt and that he never filed for it.
- He states that the lawyers seized the company and quickly filed for bogus bankruptcy.
- Court records and experts have shown that there was serious financial mismanagement.
Sam Bankman-Fried, the former CEO of the defunct FTX exchange, has repeated a controversial claim that the exchange wasn’t actually insolvent when it declared bankruptcy in November 2022. In a post on X, he said, “FTX was never bankrupt. I never filed for it.”
He suggests that lawyers pushed for the filing to serve their own interests, seizing the company and quickly filing what he calls a “bogus bankruptcy.” Earlier, he said FTX’s US branch was solvent when its wallets were reviewed, and it shouldn’t have been part of the bankruptcy.
Also, Bankman-Fried blamed the Biden administration, saying his prosecution and the entire bankruptcy case were politically driven, a form of political enforcement.
These claims repeat arguments he has been making for a while, both online and in court documents.
Legal Facts
FTX officially filed for bankruptcy in Delaware in November 2022 after a sudden liquidity crisis due to a huge wave of customer withdrawals and lost trust.
Bankman-Fried was later found guilty on seven major fraud charges, with the trial showing that billions of dollars of customer money had been improperly used, leaving an $8 billion hole in customer funds.
He is now serving a 25-year prison sentence, which was handed down in 2024.
Contrary to what the former CEO says, court records and experts who worked on the bankruptcy have shown there was serious financial mismanagement, a lack of controls, and that FTX and its sister company, Alameda, misused customer money.
A former restructuring official involved in the case at the time said that the record-keeping and business controls were in terrible shape, which goes against the claim that the company was financially sound. Also, court filings showed that FTX apparently never had board meetings, and the crypto that customers deposited wasn’t even recorded on its financial books.
Although Bankman-Fried points to certain documents in his posts, his claims haven’t changed the official court rulings or the reality that the bankruptcy filing was legally processed and accepted.
It seems the recent postings and the angle of political motivation blaming Biden are his way of cozying up to Donald Trump in hopes of a pardon, even though Trump stated in January that he has no pardon plans for Sam Bankman-Fried.
Related: FTX Victims Reach Settlement With Law Firm Fenwick & West in 2026
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Source: https://coinedition.com/sbf-challenges-ftx-bankruptcy-claims-the-exchange-was-always-solvent/
