SBF’s X Account Claims FTX Was Never Insolvent

The document shared via Bankman-Fried’s X account presents a fundamentally different version of FTX’s collapse than the one accepted by the Manhattan jury that convicted him in 2023. Where prosecutors proved a sweeping scheme to commit fraud and misappropriate $10 billion in customer funds, the document describes a “liquidity crisis” that was “on track to be resolved by the end of the month.” It claims this resolution was disrupted when “FTX’s external counsel” seized control, forcing the company into bankruptcy against its will.

This narrative aligns with statements Bankman-Fried made from behind bars in March, when he told conservative commentator Tucker Carlson that “there was enough money” to pay back every creditor at the time of the exchange’s collapse. The document insists that “FTX was never bankrupt, even when its lawyers placed it into bankruptcy,” directly challenging the legal foundation of the entire bankruptcy proceeding that has been ongoing since November 2022.

The defense document makes bold claims about FTX’s financial position at the time of collapse, asserting the company had $25 billion in assets alongside $16 billion in “FTX equity value” against only $13 billion in liabilities. These figures, if accurate, would suggest solvency rather than insolvency. The document further argues that had lawyers not sold off the company’s investment assets, FTX and sister firm Alameda Trading would hold an estimated $136 billion in current value.

This projected $136 billion portfolio includes what the document identifies as a $14.3 billion stake in artificial intelligence startup Anthropic and a $7.6 billion investment in retail brokerage Robinhood. Among the twelve other assets mentioned are XRP-linked fintech Ripple and Bitcoin mining firm Genesis Digital Assets. The document’s timing is notable, coming just weeks after the FTX Recovery Trust filed a lawsuit against Genesis Digital Assets seeking to recover $1.15 billion it claims was misappropriated by Bankman-Fried.

Perhaps most controversially, the document claims that if FTX and Alameda still existed today, the exchange’s FTT token would be worth nearly $22 billion. This assertion directly contradicts prosecution arguments during Bankman-Fried’s criminal trial that FTT, among other assets, was used to artificially prop up Alameda Research’s balance sheet.

These new claims emerge against the backdrop of Bankman-Fried’s 25-year prison sentence, handed down by U.S. District Judge Lewis Kaplan in 2024. In his sentencing remarks, Judge Kaplan offered a pointed analogy that seems to rebut the document’s underlying premise: “A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on his sentence.” This judicial perspective suggests that even if FTX’s investments had appreciated, it wouldn’t absolve the underlying criminal conduct.

The document’s circulation coincides with growing speculation about potential presidential clemency. Conservative activist Laura Loomer recently claimed on X that there’s a “massive and well-funded” effort to persuade former President Donald Trump to pardon Bankman-Fried. This speculation gained credibility when Trump pardoned Binance founder Changpeng Zhao, a former rival of Bankman-Fried’s who helped spur FTT’s implosion, after Zhao violated U.S. anti-money laundering laws at the world’s largest crypto exchange.

The timing and content of this document suggest a coordinated effort to reshape public perception of FTX’s collapse as Bankman-Fried serves his 25-year sentence. However, the arguments face significant credibility challenges given the comprehensive evidence presented at trial and the established legal findings that have governed the FTX bankruptcy proceedings for nearly two years.