Sam Bankman-Fried Revives Solvency Claims, Blames FTX Legal Team for Destroying Value

Former FTX CEO Sam Bankman-Fried has re-emerged on social media, asserting that the cryptocurrency exchange was solvent when it filed for bankruptcy in November 2022 and that its legal team was responsible for eroding its remaining value.

In a post on X, Bankman-Fried claimed FTX’s assets were sufficient to repay customers in full, alleging that “bankruptcy lawyers turned a recoverable situation into financial ruin.” He wrote, “I’ve heard that some people in the replies are asking: Where did the money go? The answer is: It never left. In fact, 98% of allowed FTX customer claims have already been fully repaid—with interest.”

Bankman-Fried argued that the repayments were calculated in petition-date U.S. dollars and maintained that FTX had enough liquidity to repay customers “in kind” when lawyers assumed control. He further claimed there were sufficient funds “to cover the entire $6.5 billion disputed claims reserve.”

The former CEO also accused the bankruptcy team of delaying repayments in 49 countries while “paying themselves and the government billions of dollars from the estate,” adding that a judge recently rejected a related motion as premature.

No court filings or independent examiner reports have confirmed Bankman-Fried’s assertion that FTX was solvent at the time of its bankruptcy. Prior investigations have attributed the exchange’s collapse to the misuse of customer funds and inadequate internal controls.

Some industry analysts view Bankman-Fried’s latest remarks as an attempt to influence public perception and possibly position himself for a future presidential pardon. According to reports, speculation around a potential pardon increased after Binance founder Changpeng “CZ” Zhao’s release from custody, with prediction markets briefly pricing higher odds for Bankman-Fried receiving similar treatment.

Bankman-Fried’s reappearance on social media triggered notable market activity. After he posted a simple “gm,” FTT—the native token of the defunct exchange—jumped more than 25%. The token has since settled around $0.88, up 10% over the past 24 hours.

Bankman-Fried is currently serving his sentence at a federal correctional facility in California, which has previously housed high-profile inmates such as Al Capone. His renewed online presence has sparked speculation that he may be testing public sentiment ahead of potential appeals or clemency efforts.

Despite the attention, legal experts suggest that a presidential pardon remains unlikely, given his convictions on multiple counts of fraud and conspiracy involving billions in customer losses.