In a freshly released 15-page, 10,000-word statement, the convicted founder of the collapsed crypto exchange argues that FTX was never insolvent. Instead, he paints the 2022 bankruptcy as a case of “temporary liquidity crunch” caused by panic, not mismanagement.
According to Bankman-Fried, FTX held $14.6 billion in assets against approximately $8 billion in customer claims at the time of its bankruptcy filing in November 2022. The former CEO maintains that if the exchange had been given just a few more weeks, all customer balances could have been restored.
He blames the company’s legal advisors for triggering a “needless” Chapter 11 filing that, in his words, “destroyed billions in value.”
However, the broader crypto community, still scarred by the FTX collapse, is far from persuaded.
The “Solvent” Argument: Inside SBF’s Claims
In his lengthy defence, SBF breaks down FTX’s alleged asset composition at the time of the crash:
- $5.5 billion in cash and liquid cryptocurrencies
- $3.7 billion in illiquid or locked tokens
- $4.6 billion in venture investments
- $300 million in Bahamian real estate holdings
- $100 million in licensed subsidiaries, including FTX EU and LedgerX
He argues that these figures prove solvency and that the crisis stemmed only from a short-term liquidity squeeze following a flood of withdrawal requests.
“The assets were there,” SBF wrote. “We could have made customers whole if we were not forced into premature bankruptcy.”
This latest statement comes ahead of his formal appeal and appears designed to challenge the prevailing narrative that FTX was a house of cards built on deception and poor risk management.
Critics Point to Market Luck, Not Management
Despite the elaborate breakdown, few are convinced.
Crypto analysts and on-chain investigators argue that FTX’s asset recovery was a product of sheer market luck rather than prudent financial oversight.
When FTX collapsed in November 2022, Bitcoin (BTC) traded below $20,000, and Solana (SOL) hovered near $10, both at multi-year lows. By early 2025, BTC had surged past $100,000, while SOL soared above $180. The resulting sixfold rebound in token prices drastically inflated the value of the remaining FTX assets, allowing administrators to pursue partial customer repayments.
On-chain analyst ZachXBT was blunt in his response:
“The creditors were paid from crypto prices at the time of the FTX Nov[ember] 2022 bankruptcy and not at current prices which caused users to take massive losses if they held assets like SOL or BTC.”
He added, “Illiquid investments worth more today are just a coincidence. You clearly haven’t learned from your time in prison and continue to spread misinformation.”
Others in the crypto sphere echoed similar views, noting that even if today’s valuations technically render FTX “solvent,” that fact does not erase the fraudulent actions, misuse of customer funds, or deception that led to the exchange’s downfall.
A PR Move Before the Appeal
Observers see the 10,000-word statement less as a genuine accounting defence and more as a public relations manoeuvre.
Reports suggest the campaign is being guided by SBF’s family, notably his mother Barbara Fried, who has been working to reposition the narrative surrounding her son’s case. The latest document frames SBF not as a criminal mastermind but as a misunderstood entrepreneur misled by panicked lawyers and collapsing market sentiment.
Yet, the industry remains unmoved.
To most, this new defence reads as an attempt to rewrite history rather than accept responsibility. Crypto commentators and investors view the document as a last-ditch effort to restore a shattered reputation before the appeal process begins.
No Redemption in Sight
While SBF’s statement attempts to recast him as the victim of circumstance, it has largely reinforced public fatigue with his ongoing justifications.
The numbers may look different today thanks to a resurgent crypto market, but the narrative of deceit, reckless leverage, and commingled customer funds remains unchanged.
As one commentator summarised on X:
“SBF isn’t rewriting history, he’s erasing accountability.”
With his appeal looming and community sentiment firmly against him, Sam Bankman-Fried’s latest claim of solvency appears less a revelation and more a desperate echo from a founder still unable to admit the truth.
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