Sam Bankman-Fried, the imprisoned founder of the collapsed cryptocurrency exchange FTX, has released a new statement claiming that his company was financially sound before its 2022 downfall — and that its bankruptcy team, not mismanagement, is to blame for destroying billions in value.
[SBF says:]
— SBF (@SBF_FTX) October 31, 2025
This is where the money went. https://t.co/HVRwEw5Z1k https://t.co/5DrA13L5YE pic.twitter.com/O6q77DvmTn
In a 15-page document dated September 30, Bankman-Fried asserted that both FTX and its trading arm Alameda Research were “never insolvent.” According to him, FTX had $25 billion in assets and $16 billion in equity at the time of its liquidity crisis — far exceeding the $8 billion in withdrawal requests from customers.
“The crisis FTX faced in November 2022 was a liquidity crisis — a sudden shortage of cash,” the document stated. “It was on track to be resolved by the end of the month — that is, until FTX’s external counsel seized control.”
Bankman-Fried accused the exchange’s bankruptcy lawyers and current CEO John J. Ray III of forcing FTX into unnecessary bankruptcy proceedings, which he claims delayed customer repayments and led to massive value losses. He alleged that the bankruptcy team was “heavily incentivized” to pursue the filing, misrepresented FTX as “hopelessly insolvent,” and ignored internal records showing otherwise.
The document further claimed that the bankruptcy estate paid close to $1 billion in professional fees, wrote off $7 billion worth of FTT (FTX’s native token), and sold assets below market value — actions Bankman-Fried said “decimated” the company. He argued that the combined assets and FTX equity held by Alameda would now be worth about $136 billion had the estate not intervened.
The FTX bankruptcy estate has not yet commented on the new claims.
A Continuing Battle Over FTX’s Legacy
FTX’s implosion in late 2022 remains one of the most infamous collapses in crypto history. Court filings later revealed that Alameda Research had received a secret exemption from FTX’s risk management system, allowing it to borrow unlimited customer funds without collateral. The loophole fueled massive, risky trades — many tied to FTT — and artificially inflated the firm’s balance sheet.
When those details emerged, investors rushed to withdraw funds, triggering an $8 billion shortfall and an industry-wide liquidity crunch that erased around $200 billion from the global crypto market.
Bankman-Fried was arrested in the Bahamas a month after FTX’s bankruptcy and extradited to the United States. In November 2023, he was convicted of fraud and conspiracy for misusing customer funds and is now serving a 25-year prison sentence. He continues to appeal the conviction.
The former crypto mogul and his family maintain that he was wrongfully convicted and are reportedly seeking a pardon from former President Donald Trump — who has previously pardoned Silk Road founder Ross Ulbricht and Binance co-founder Changpeng Zhao.
Earlier this month, Bankman-Fried posted on GETTR, claiming his prosecution was politically motivated after he began donating to Republican candidates.
SBF
Despite his assertions, legal experts note that Bankman-Fried’s latest statement does little to change the outcome of his criminal case or the bankruptcy process, which remains ongoing as FTX creditors continue to pursue repayments.
