From Jail, Sam Bankman-Fried Says FTX Was By no means Bankrupt

Key Takeaways:

Sam Bankman-Fried introduced in jail that FTX has by no means been bankrupt and he has not authorised the submitting for chapter in line with Chapter 11.He accused exterior legal professionals who submitted a “bogus” doc to take management of the trade.These statements battle with the courtroom’s judgement ruling billions of {dollars} of shoppers shedding.

Sam Bankman-Fried is now again within the crypto information protection, with recent in-prison assertions that FTX was by no means bankrupt and shifting the accountability of the trade to break down to legal professionals who seized management in November 2022.

SBF Denies Chapter Submitting from Jail

In certainly one of his latest remarks that he has posted by 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 just some hours later with out his consent.

He described the submitting as illegitimate and claimed it was used to empty worth from the property by authorized charges. Bankman-Fried insists FTX was nonetheless operational on the time and argues that the chapter course of itself prompted long-term injury to prospects and the platform.

Agree with virtually all of this.

However FTX was by no means bankrupt. I by no means filed for it.

The legal professionals took over the corporate and 4 hours later they filed a bogus chapter so they might pilfer it for cash. pic.twitter.com/L7VWJK4Wny

— SBF (@SBF_FTX) February 10, 2026

As a result of U.S. federal inmates should not allowed unrestricted entry to social media, the posts are believed to have been relayed by intermediaries, corresponding to authorized counsel or associates.

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Claims of Solvency and Liquidity Stress

Bankman-Fried’s core argument is that FTX confronted a short-term liquidity disaster slightly than insolvency. Based on him, the trade had enough property to satisfy the duty of the shoppers, and the problems turned critical solely when the withdrawals elevated.

He has a number of instances 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 consider that that they had vital proof omitted for use within the trial. They allege that the courtroom restricted debate on solvency, the expectation of reimbursement of shoppers and dependence on authorized recommendation. These arguments are disallowed by critics who level out that the fraud expenses weren’t primarily based on the balance-sheet snapshots alone, however misuse of funds and intent.

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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 property and collectors do anticipate receiving near one hundred pc again by future recoveries, judges have mentioned that future recoveries don’t alter the character of previous wrongdoing.