SBF Claims FTX Was Solvent, Alleges Bankruptcy Team Caused Firm's Collapse

3 days ago7 min read

From federal prison, Sam Bankman-Fried has put forward a new defense narrative claiming FTX was solvent at the time of its bankruptcy filing and alleging that the professional teams managing the bankruptcy proceedings ultimately caused the firm's collapse. This revised account, which SBF and his family are reportedly promoting as they seek clemency, represents a significant shift from the evidence presented during his fraud trial.The former FTX CEO now contends that the company's failure resulted not from fraudulent activities but from mishandling by bankruptcy professionals who 'decimated' the organization after taking control. This perspective directly challenges the findings of federal prosecutors and the bankruptcy teams, who documented an $8 billion shortfall in customer funds and extensive commingling of assets between FTX and its sister hedge fund, Alameda Research.Legal experts note that this eleventh-hour narrative faces substantial hurdles, given the extensive documentary evidence and witness testimony presented during Bankman-Fried's criminal trial, which resulted in his conviction on seven fraud and conspiracy counts. The reported efforts to seek a presidential pardon from Donald Trump add another dimension to the case, potentially moving the resolution from the judicial system to the political arena.For the cryptocurrency industry, these developments represent another chapter in the ongoing fallout from FTX's collapse, which has prompted increased regulatory scrutiny and damaged public trust in digital asset platforms. While SBF's new claims may influence public perception, they face overwhelming contrary evidence from multiple investigations into one of the largest financial fraud cases in American history.

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#SBF

#FTX

#bankruptcy

#solvency

#conviction

#clemency

#Trump