Sam Bankman-Fried, the former CEO of collapsed crypto exchange FTX, has published an extensive document defending his position and disputing the widely accepted narrative behind the company’s downfall. Shared this week on X, the 30-page report asserts that FTX “was never insolvent” and suggests that legal and procedural issues, rather than poor financial health, led to the company’s bankruptcy.
The document includes numerous tables outlining theoretical “mark-to-market” valuations of various assets once held by FTX, such as Solana tokens and shares in the AI startup Anthropic. These calculations imply that, had these assets been valued according to current market prices, FTX’s portfolio could be worth upwards of $100 billion. Bankman-Fried’s argument points to bankruptcy attorneys’ management and decisions as the critical factors that prevented the exchange from recovering and fulfilling customer withdrawals.
However, the claims in this report stand in contrast to official financial disclosures and court findings, which indicated that FTX faced significant liquidity shortfalls and was unable to cover customer deposits at the time of its collapse. Independent forensic analyses and regulatory statements have yet to corroborate Bankman-Fried’s assertion of solvency leading up to the bankruptcy filing.
This move marks the latest effort by Bankman-Fried to reshape public perception of the FTX fiasco. It also aligns with ongoing efforts by his family and legal team to advocate on his behalf. Notably, campaigns for a presidential pardon have been underway, with involvement from attorneys connected to former President Donald Trump. Reports reveal that his legal team coordinated a jailhouse interview with media personality Tucker Carlson as part of this advocacy strategy.
Prediction markets, such as Kalshi, currently estimate roughly a 10% likelihood that Bankman-Fried will receive a pardon from Trump, reflecting skepticism about his clemency prospects. The release of this document may serve dual purposes: attempting to rehabilitate Bankman-Fried’s public image and influence the political calculus surrounding a potential pardon.
Bankman-Fried’s statement and associated reports are being closely examined by legal experts, investors, and the broader crypto community as the implications of the FTX collapse continue to unfold across industry and regulatory landscapes.
