A document shared via the account of Sam Bankman-Fried argues that FTX was never insolvent, claiming its assets could have reached $136 billion and its native token FTT $22 billion today.
The X account once associated with Sam Bankman-Fried (SBF), the convicted founder of collapsed crypto exchange FTX, announced late Thursday that FTX was never insolvent, sharing a 14-page document asserting the company instead suffered a temporary liquidity crisis disrupted by outside legal action. The claim directly challenges the narrative that led to the founder’s 2023 fraud conviction.
According to the document, FTX held significantly more assets than liabilities at the time of its November 2022 collapse. The text asserts the group’s combined holdings—including large stakes in the AI startup Anthropic and brokerage firm Robinhood—would today total around $136 billion. It further claims that the FTT token would be worth roughly $22 billion if the exchange and sister firm Alameda Research still existed. These numbers frame the collapse not as a failure of solvency but as a result of external interference.
Re-examining the Solvency vs. Liquidity Debate
The heart of the argument hinges on whether FTX was technically insolvent—meaning liabilities exceeded assets—or simply illiquid, temporarily unable to meet short-term demands. The document alleges that external counsel and the bankruptcy trustees forced an early fire-sale of assets that destroyed potential recovery value.
Critics remain highly skeptical. Court filings from the newly installed CEO of FTX’s bankruptcy estate, John J. Ray III, described what he called an “unprecedented” failure of corporate controls, with missing records and poor asset tracking. Analysts also point to longstanding concerns over FTX’s blending of customer funds with affiliate trading and the exposure of Alameda to high-risk positions—factors they argue point to true insolvency, not merely liquidity stress.
Market and Legal Implications
Although the document’s assertions have not been tested in court, they may complicate ongoing litigation and creditor recovery efforts. The token FTT briefly gained attention on social media following the post, underscoring how narrative shifts still influence crypto markets.
Bankman-Fried is currently serving a 25-year prison sentence after a jury found he orchestrated customer-fund misappropriation and deceptive practices. The new post may signal an effort to reshape his public image amid speculation about potential clemency discussions.
For the crypto industry and FTX’s creditors, the dispute highlights a persistent tension: was the collapse the result of misgovernance and insolvency, or a preventable liquidity crisis aggravated by bankruptcy-process mismanagement? The answer could influence future crypto bankruptcy frameworks and regulatory oversight.
FalconX is set to acquire Swiss-based 21Shares, marking one of the most significant mergers in the digital asset sector this year. The deal signals growing institutional interest in crypto infrastructure and investment products.
In a move that underscores the accelerating consolidation within the cryptocurrency sector, FalconX, a leading institutional digital asset platform, announced plans to acquire 21Shares, the Swiss-based issuer of crypto exchange-traded products (ETPs). The deal, expected to close in early 2026 pending regulatory approval, represents one of the largest cross-border transactions in the crypto finance space this year.
The acquisition aims to combine FalconX’s institutional trading infrastructure with 21Shares’ expertise in retail investment products. The result could create a new powerhouse capable of bridging professional trading, asset management, and regulated crypto exposure under one umbrella. While financial terms were not disclosed, analysts suggest the transaction could exceed several hundred million dollars given 21Shares’ growing market share in Europe.
Strategic Expansion into Regulated Products
For FalconX, the acquisition provides a direct entry into the fast-expanding market for regulated crypto investment vehicles. 21Shares currently operates more than 40 ETPs across European exchanges, including products tracking Bitcoin, Ethereum, and diversified crypto baskets. The integration is expected to accelerate FalconX’s push to serve institutional investors seeking secure, transparent access to crypto markets.
Industry observers note that the timing aligns with increasing investor demand for regulated instruments, especially as major asset managers move deeper into digital assets. The combined company could also leverage FalconX’s liquidity and trading technology to enhance 21Shares’ offerings, potentially reducing spreads and improving product performance.
A Signal of Maturity for the Crypto Sector
The FalconX–21Shares merger reflects a broader trend of consolidation among established crypto firms, many of which are positioning themselves for the next phase of industry growth following years of volatility. As regulatory frameworks tighten globally, larger players with strong compliance standards are expected to dominate.
Market analysts view this deal as a sign of confidence in the sector’s long-term fundamentals. By aligning a U.S.-based institutional platform with a European retail product issuer, the combined entity could serve as a model for cross-market integration. It also underscores the ongoing shift from speculative trading toward structured, institutional-grade investment solutions.
If approved, the acquisition could reshape the competitive landscape for crypto finance, setting a precedent for future mergers aimed at strengthening transparency, scale, and investor trust in the digital asset economy.
