Sam Bankman-Fried Claims FTX Was Never Insolvent, Blames Lawyers for $120B Lost Value

In a surprising new twist to one of crypto’s most infamous collapses, convicted FTX founder Sam Bankman-Fried (SBF) has released a lengthy report asserting that his fallen exchange “was never insolvent” and that its downfall was engineered by bankruptcy lawyers, not fraud.

The report, titled “FTX: Where Did The Money Go?”, was posted by SBF’s team on X (formerly Twitter), claiming that billions in customer funds were always recoverable and that bankruptcy proceedings caused the real financial destruction.

“FTX was never insolvent. There have always been enough assets to repay all customers—in full, in kind—both in November 2022, and today,” SBF wrote, emphasizing that the exchange held around $15 billion in assets at the time of its collapse.

SBF’s Core Argument: “FTX Could Have Paid Everyone”

According to the report, FTX had sufficient holdings in crypto, venture equity, and real estate to cover its $8 billion in customer liabilities. Citing 2023 creditor filings, Bankman-Fried said nearly 98% of creditors have already received 120% repayments, and the estate still retains $8 billion after legal fees and payouts—proof, he argues, that insolvency was never real.

However, critics note that these repayments were made in U.S. dollars based on 2022 prices, not in-kind crypto. With Bitcoin, Ethereum, and Solana now worth several times their 2022 values, many customers received far less than what their holdings would be worth today.

Blame on Sullivan & Cromwell and John Ray III

The former CEO laid responsibility squarely on law firm Sullivan & Cromwell (S&C) and John J. Ray III, the executive who took control of FTX during bankruptcy. He accused them of “seizing” the company and forcing unnecessary bankruptcy proceedings for personal financial gain.

“FTX was on track to be resolved by the end of the month—until the lawyers took over. They acted out of self-interest to control billions in assets and collect massive fees,” the report alleges, noting that professional costs have exceeded $1 billion.

SBF claims that key staff were dismissed “within hours,” preventing FTX from continuing operations that could have recovered substantial value.

Alleged $120 Billion “Fire-Sale” Loss

Bankman-Fried argues that the bankruptcy team’s liquidation of FTX assets cost stakeholders over $120 billion in potential gains. Among his cited examples:

• Anthropic stake: Sold for under $1B, now worth over $183B.

• Robinhood shares: Sold for $600M, currently valued around $7B.

• Solana tokens: Sold for $3.3B, worth more than double that today.

• FTT token: Declared worthless, yet still maintains a $300M+ market cap.

He contends that if the estate had “done nothing at all,” customers and investors would now control $136 billion in assets.

Crypto Community Pushes Back

Prominent blockchain investigator ZachXBT swiftly dismissed the claims, accusing SBF of rewriting history.

“You clearly haven’t learned from your time in prison. You’re twisting facts again. FTX didn’t have liquidity to meet withdrawals—prices rising two years later doesn’t change that,” ZachXBT replied.

He emphasized that FTX’s illiquid balance sheet and missing customer funds—not external lawyers—triggered the bankruptcy filing.

A Familiar Defense

SBF’s claims stand in stark contrast to his 2023 fraud conviction, where a U.S. court found him guilty of misusing billions in customer deposits for risky bets, political donations, and lavish real estate purchases. He’s currently serving a 25-year prison sentence.

Yet, even from behind bars, the disgraced founder continues to challenge the official narrative—portraying himself as a victim of legal overreach rather than the orchestrator of one of crypto’s most catastrophic implosions.