SBF Claims Exchange Was Solvent at Collapse

Sam Bankman-Fried’s long-inactive X account posted a 14-page statement claiming that FTX was never insolvent and that the exchange held enough assets to cover user balances at the time of its bankruptcy filing.

The post argues that FTX’s downfall resulted from a liquidity crunch and poor management during bankruptcy proceedings rather than a true lack of funds.

According to the statement, FTX’s assets exceeded its liabilities when measured at fair value, and customer deposits were still backed by real holdings. SBF suggested that bankruptcy administrators undervalued those assets and exaggerated the scale of losses.

Crypto Community Reacts

The post quickly triggered heated discussion within the crypto community. Traders, analysts, and former FTX users debated whether SBF’s claims held any merit or were part of a public relations strategy.

Some noted that much of FTX’s reported asset base consisted of illiquid tokens, which may have distorted its true financial health.

Others saw the post as an attempt by SBF to influence ongoing appeals or improve his image while serving time.

Broader Implications

If the claims were ever proven accurate, they could reshape how the FTX collapse is remembered. It would mean that the exchange’s fall stemmed from liquidity issues rather than insolvency, changing the narrative around one of the most infamous events in crypto history.

Legal experts caution that verifying such claims would require transparent accounting and credible third-party audits of the company’s books at the time of bankruptcy.

Impact on the Industry

The controversy has revived debate over how digital asset bankruptcies are managed and how valuations are determined during crises.

Many industry observers point to the need for real-time audits, clearer asset segregation, and more accountability for centralized exchanges.

The renewed attention around FTX also reminds investors of the importance of transparency in custodial platforms.

Outlook

For now, there is no sign that the FTX bankruptcy process will be reopened. Regulators and creditors continue to move forward with asset recovery and repayment plans.

While SBF’s latest statement stirred public interest, it has not changed the legal reality of the case.

What it has done is reignite the conversation around trust, transparency, and how the crypto industry must evolve to prevent another FTX.