Key Takeaways
- Sam Bankman-Fried claims FTX had $14.6 billion in assets versus $8 billion in claims.
- He blames external lawyers for forcing a premature bankruptcy.
- The crypto community rejects his defense, citing asset value inflation from crypto’s recovery.
Nearly three years after FTX’s spectacular collapse, founder Sam Bankman-Fried (SBF) is once again trying to rewrite the story.
In a newly released 15-page, 10,000-word defense, the disgraced FTX founder insists that the exchange was never insolvent — and that if not for outside interference, all customers could have been made whole.
But as his appeal looms, few in the crypto community are buying it.
SBF: “FTX Was Solvent”
In his lengthy statement, SBF claims FTX held $14.6 billion in assets against roughly $8 billion in customer claims at the time of its November 2022 bankruptcy filing.
He argues that the crisis was not insolvency, but a temporary liquidity crunch — a “sudden shortage of cash,” he says — that could have been resolved within weeks if the company hadn’t been pushed into bankruptcy.
According to SBF, those assets included:
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$5.5 billion in cash and liquid crypto
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$3.7 billion in illiquid tokens
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$4.6 billion in venture investments
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$0.3 billion in real estate holdings in the Bahamas
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$0.1 billion in licensed subsidiaries such as LedgerX and FTX EU
The filing pins the blame on FTX’s legal advisors, accusing them of panicking and forcing a Chapter 11 filing that “needlessly destroyed billions in value.”
While some online commentators — including influencer Tyler Durden — suggested SBF was a “fall guy” for deeper industry failures, the overwhelming response from the crypto community was one of skepticism and fatigue.
FTX’s Asset Recovery Was Luck, Not Foresight
Critics were quick to point out that FTX’s repayment success had little to do with SBF’s management, and everything to do with the massive rebound in crypto markets since the exchange’s downfall.
When FTX imploded in November 2022, Bitcoin (BTC) was trading below $20,000 and Solana (SOL) near $10.
By early 2025, Bitcoin had soared past $100,000 and Solana above $180 — a sixfold recovery that dramatically boosted the value of assets FTX still held.
On-chain sleuth ZachXBT dismissed SBF’s defense, writing:
“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.”
“Illiquid investments worth more today are just a coincidence,” ZachXBT added. “You clearly have no[t] learned from your time spent in prison thus far and repeat the same misinformation like before.”
The crypto community echoed the sentiment, reminding SBF that even if FTX’s balance sheet now looks solvent, his actions were still illegal — and no spreadsheet revision can erase that.
A PR Gamble
The latest filing appears to be part of a coordinated PR campaign led by SBF’s family and defense team ahead of his upcoming appeal.
His mother, Barbara Fried, has reportedly been working to shift public perception, framing her son’s downfall as a failure of legal counsel and market panic rather than fraud.
However, the broader industry remains unmoved.
To many, this new defense reads less like an explanation and more like damage control — a last-ditch effort to salvage reputation before the courts close the book on one of crypto’s darkest chapters.
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Prashant Jha is a seasoned crypto journalist based in Delhi, India, with a Bachelor’s Degree in Computer Science Engineering. Passionate about the evolving world of blockchain and cryptocurrencies, he has been a dedicated voice in the industry since 2018. Prashant’s expertise lies in regulatory reporting, where he unravels complex legal and financial developments with clarity and precision. Before joining CCN in 2024, he honed his craft at Cointelegraph, establishing himself as a trusted name in crypto journalism.
His coverage spans major industry events, including the high-profile collapses of FTX, Three Arrows Capital (3AC), and LUNA, offering readers insightful analyses of their regulatory and market implications. Prashant’s technical background enables him to bridge the gap between intricate blockchain technology and its real-world applications, making his work accessible to novices and experts.
Beyond his professional pursuits, Prashant is an avid music enthusiast, often exploring diverse genres to unwind. A sports lover, he has a particular passion for cricket and frequently engages in discussions about the game. His multifaceted interests and sharp journalistic instincts make him a valuable contributor to CCN, where he continues shaping the crypto landscape's narrative.
