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.