TLDR
- Sam Bankman-Fried’s dormant X account posted a 14-page document on Thursday night claiming FTX was never insolvent.
- The document argues FTX held $25 billion in assets and $16 billion in equity against $13 billion in liabilities at its collapse.
- SBF claims the exchange faced a liquidity crisis that could have been resolved without external counsel intervention.
- The post suggests FTX’s portfolio would now be worth $136 billion, including stakes in Anthropic, Robinhood, and Ripple.
- Venture capitalist Adam Cochran bluntly responded to SBF’s claims by tweeting that he stole from customers.
Sam Bankman-Fried’s dormant X account posted a 14-page document on Thursday night. The document claims that FTX was never insolvent and challenges the narrative of fraud conviction. The post appeared years after the exchange collapsed and the founder received a 25-year prison sentence.
FTX Audits Contradict SBF’s Latest Defense
The document allegedly came from SBF and his team. It argues that FTX faced a liquidity crisis rather than the $10 billion fraud a Manhattan jury found. The situation could have been resolved by the end of the month without external counsel’s interference, according to the document.
The post claims FTX held $25 billion in assets at the time. It states the exchange had $16 billion in equity value against $13 billion in liabilities. Furthermore, the document argues FTX’s portfolio would now be worth $136 billion without legal intervention.
The portfolio includes stakes in Anthropic, Robinhood, and Ripple. The valuation assumes these investments continued without disruption. However, critics quickly challenged these claims across crypto platforms.
The post echoed SBF’s March interview with Tucker Carlson. He insisted then that enough money existed to repay everyone. The new document fits his ongoing narrative of political targeting rather than fraud.
Weeks earlier, posts on GETTR alleged political motivation behind his arrest. The posts blamed his centrist political shift and Republican donations. They also accused the Biden administration and former SEC Chair Gary Gensler of timing his arrest strategically.
Legal experts rejected the arguments as similar to those dismissed in court. Former FTX creditors noted the claims contradict forensic audits. These audits traced billions in missing customer funds and proved insolvency.
Venture capitalist Adam Cochran responded bluntly on social media. “Shut the fuck up, Sam. You stole,” he tweeted. His comment reflected widespread industry sentiment about the convicted executive’s latest attempt.
Investigation Reveals Missing Context
On-chain investigator ZachXBT called the claims misinformation from trial days. He explained that FTX creditors received payments based on November 2022 bankruptcy prices. These prices were far lower than current valuations for assets like SOL and BTC.
Many users took heavy losses despite recent crypto price increases. The rise in FTX’s illiquid investments is coincidental, not evidence of solvency. ZachXBT stated SBF weaponizes the fact that every FTX asset increased from November 2022 lows.
“They factually could not pay out users at bankruptcy time,” ZachXBT explained. The investigator added that the document falsely portrays the bankruptcy team as villains. This narrative ignores the actual circumstances that led to FTX’s collapse.
SBF’s family continues exploring options for a presidential pardon from Donald Trump. His parents, Stanford professors Joseph Bankman and Barbara Fried, reportedly lead this effort. Trump previously pardoned Binance founder Changpeng Zhao, who is believed to have contributed to FTX’s downfall.
CZ announced in November 2022 that Binance would sell $529 million worth of FTT. This announcement followed a CoinDesk report exposing Alameda Research’s dependence on FTT. The revelation sparked panic among investors and triggered a massive withdrawal from FTX.
The subsequent liquidity crisis bore a resemblance to a digital-era bank run. Binance briefly considered acquiring FTX to contain the fallout. However, due diligence revealed problems that caused Binance to withdraw from the deal.
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