SBF blames lawyers for FTX collapse, says exchange was solvent

Former FTX CEO Sam Bankman-Fried (SBF) has resurfaced, claiming the exchange was always solvent and could have fully repaid its customers.

According to Bankman-Fried, his legal team in 2022 allegedly pressured him into falsely declaring bankruptcy to take control of the company’s assets.

“FTX was never insolvent. If the exchange hadn’t been taken over, customer assets would have been returned long ago,” SBF wrote. He also claimed internal records showed assets exceeded liabilities at the time of the bankruptcy filing.

His statements contradict court findings, where prosecutors presented evidence of large-scale customer fund withdrawals and manipulation of the FTT token. FTX auditors previously reported an $8 billion deficit, and charges against SBF included fraud and misuse of client funds.

The post triggered another wave of debate in the crypto community. Users on X noted that Bankman-Fried’s remarks mirrored the defense his lawyers tried to use during trial - a strategy ultimately rejected by the court.

Convicted in 2024, Bankman-Fried continues to insist his arrest was politically motivated, saying the Biden administration targeted him after he donated to Republicans. He argues that both the FTX bankruptcy and his prosecution were unfair and plans to keep appealing his case.

As GNcrypto previously reported, bets on a possible release for Bankman-Fried jumped after CZ’s pardon. Many now think he could be the next to get leniency from President Trump.

FTX collapsed in November 2022 after a leaked Alameda Research balance sheet exposed a liquidity shortfall and the use of customer deposits for speculative trading.