Sam Bankman-Fried Claims 'FTX Was Never Insolvent' in Prison Manifesto

3 days ago7 min read

From federal custody, former FTX CEO Sam Bankman-Fried has circulated a document asserting his collapsed cryptocurrency exchange was 'never insolvent' prior to its November 2022 bankruptcy. The lengthy statement represents his most comprehensive attempt to counter the narrative that FTX was fundamentally unsound.In the document, Bankman-Fried argues that using the exchange's own FTT token at market prices would have covered customer liabilities, challenging the legal and accounting basis for the insolvency declaration. Legal analysts suggest the argument faces significant hurdles, as regulatory bodies typically value assets based on realizable fiat currency rather than proprietary tokens whose value is interdependent with the exchange itself.The timing of the document's release comes as Bankman-Fried awaits sentencing after his conviction on seven counts of fraud and conspiracy. Victims' advocates have criticized the publication as a revisionist effort that ignores the reality faced by customers who lost access to their funds. The manifesto provides insight into Bankman-Fried's ongoing defense strategy while highlighting the complex accounting questions surrounding cryptocurrency exchange failures.

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#Sam Bankman-Fried

#FTX

#insolvency

#cryptocurrency exchange

#legal defense

#document