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SBF Defends FTX: ‘We Had $8 Billion, Not Insolvency’

Sam Bankman-Fried on Friday pushed again towards the frequent view of FTX’s collapse, saying the alternate was not insolvent when it failed in November 2022.

According to a doc posted on X on October 31, 2025, his workforce argues the corporate suffered a sudden liquidity run somewhat than a balance-sheet shortfall.

The submitting claims there are roughly $14.6 billion in property property versus about $8 billion in buyer claims.

Claims Of Solvency And Asset Totals

Bankman-Fried’s submitting asserts that roughly $8 billion of buyer liabilities by no means left the alternate’s property. It says authorized and advisory prices have been sizable — roughly $1 billion — however that giant asset recoveries since 2022 imply collectors are in line for wholesome payouts.

Reports have disclosed that 98% of collectors have already been repaid about 120% of their claims, and the submitting initiatives last buyer repayments may fall between 119% and 143%.

The doc shifts blame partially to outdoors advisers and the emergency administration workforce introduced in after the collapse.

It names the regulation agency Sullivan & Cromwell and interim CEO John J. Ray III as having steered the chapter course of in ways in which, the submitting contends, made rescue or fast decision more durable.

The tone is defensive, and the numbers are offered as proof that the property can cowl claims.

Critics Challenge The Account

But not everybody accepts that account. Based on reviews from on-chain investigators and others, critics say the figures don’t settle the important thing query: was FTX solvent in the meanwhile clients tried to withdraw funds?

On-chain researcher ZachXBT and different analysts level out that the worth of many recovered property has risen since November 2022, and that utilizing as we speak’s costs to declare previous solvency can mislead.

The distinction between having property that may finally pay folks and having liquid money on the peak of a run is on the middle of the disagreement.

Investigators, court docket filings and prior testimony in prison proceedings highlighted governance failures and dangerous ties with Alameda Research.

Those findings stay a part of the general public report and complicate any easy declare that the enterprise was merely a sufferer of timing.

Legal observers additionally observe that bankruptcy prices and litigation threat can meaningfully scale back what’s finally accessible to clients.

What This Means For Customers And The Industry

For former clients, essentially the most fast query is how repayments are calculated. Reports have disclosed that some sums can be primarily based on November 2022 valuations somewhat than present market costs.

That method can depart customers brief if asset costs later climbed. Even if the property yields payouts above 100% of claims, the timing and foundation of these funds matter to precise recoveries.

If Bankman-Fried’s portrayal good points traction, it will reframe components of the story from one among clear insolvency to a debate about timing, liquidity and post-collapse administration.

Regulators and collectors are watching carefully. The authorized and monetary aftermath of FTX’s failure continues to be unfolding, and competing narratives about duty and restoration will form how related collapses are dealt with sooner or later.

Featured picture from Tom Williams/Getty Images, chart from TradingView

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