Sam Bankman-Fried (SBF), the disgraced founder of FTX, has once again shaken the crypto world. Despite serving a 25-year prison sentence for fraud and conspiracy, he recently released a document alleging that the bankruptcy process of his company was nothing short of a legal takeover. The post, published on October 31, 2025, on SBF’s official X (formerly Twitter) account, claims that FTX and Alameda Research were solvent at the time of the exchange’s collapse in 2022.
According to the document, FTX reportedly held $14.6 billion in assets when it filed for bankruptcy. Bankman-Fried argues that all affected customers have either been compensated or will soon receive between 119% and 143% of their deposits, with 98% of users already reimbursed an average of 120%. He further insists that, after paying out $8 billion in claims and another $1 billion in legal fees, FTX still had $8 billion in reserve. In his words, “FTX was never insolvent — there were always enough assets to pay all clients in full, both in 2022 and now.”
SBF describes the company’s downfall as a liquidity crisis rather than insolvency, claiming it could have been resolved by the end of November 2022 had management not been removed. He maintains that FTX, including its holdings in Anthropic and other portfolio firms, could today be valued at over $136 billion if the collapse hadn’t occurred. Bankman-Fried says that before he was ousted, the company was already processing customer repayments and still generating $3 million daily in trading fees.
The document paints a picture of betrayal and mismanagement. SBF accuses Sullivan & Cromwell, the law firm overseeing the bankruptcy, of orchestrating a “hostile legal takeover” of FTX. He claims that the attorneys had financial incentives to file for bankruptcy because, once the company became debtor-controlled property, they could freely pay themselves from FTX’s billions. According to him, these lawyers also leaked privileged information to the court, sold assets below value, dismissed essential staff, and delayed the recovery process—causing $120 billion in damages to clients and shareholders.
In his statement, SBF insists, “FTX was not a scam. It could have paid everyone in full by the end of 2022. The real problem wasn’t the lack of funds but the external management that destroyed trust and value.”
The timing of this revelation has raised eyebrows. Earlier this year, Bankman-Fried expressed interest in seeking a presidential pardon from Donald Trump. Although his close associates have reportedly been lobbying for leniency, no official request has been made. Industry observers, including the crypto investigator ZachXBT, were quick to dismiss the new claims as an attempt to rewrite history. “The fact that FTX’s illiquid investments are worth more today is pure coincidence,” ZachXBT said. “SBF hasn’t learned from his time in prison — he’s just recycling old misinformation.”
Whether the document is a genuine attempt to reveal the truth or merely another public relations ploy, one thing is certain — the FTX saga is far from over. This latest development adds yet another chapter to one of the most controversial collapses in cryptocurrency history, reminding the industry of the delicate balance between innovation, regulation, and human ambition.
