Sam Bankman-Fried Claims FTX Was Solvent, Blames Lawyers for Collapse
Sam Bankman-Fried asserts FTX wasn't insolvent and blames its bankruptcy on the actions of its legal team, particularly Sullivan & Cromwell and John J. Ray III.Summary
Sam Bankman-Fried (SBF) claims in a new report that FTX was never actually insolvent, attributing its collapse to the actions of bankruptcy lawyers who he alleges prioritized their own fees over maximizing returns for customers and equity holders. He argues that FTX possessed sufficient assets to repay customers in full, both in November 2022 and currently, and that the estate has already recovered significant funds. However, repayments are being made based on 2022 prices, resulting in losses for those holding assets like Bitcoin and Ethereum. SBF accuses the legal team, Sullivan & Cromwell (S&C) and John J. Ray III, of seizing control and making detrimental asset sales, including stakes in Anthropic, Robinhood, and Solana, at 'fire-sale' prices. Crypto investigator ZachXBT disputes SBF’s claims, pointing out that repayments were based on 2022 prices and that FTX lacked liquidity at the time of bankruptcy, accusing SBF of repeating misinformation.
(Source：BeInCrypto)