Sam Bankman-Fried Denies FTX Was Ever Insolvent

In a recent statement that’s raising eyebrows across the crypto world, former FTX CEO Sam Bankman-Fried (SBF) has claimed that the now-bankrupt exchange was never actually insolvent. According to SBF, “FTX has always had enough assets to repay all customers—in full, in kind.” This bold assertion comes despite the company’s massive collapse and the legal proceedings that followed, which painted a very different picture of FTX’s financial health.

Bankman-Fried, currently appealing his conviction for fraud and conspiracy, continues to defend his version of events. His comment directly challenges the narrative that FTX misused customer funds and failed to maintain sufficient reserves to cover liabilities.

A Direct Contradiction to Legal Findings

FTX filed for bankruptcy in November 2022 after reports exposed significant financial mismanagement and a multi-billion dollar hole in its balance sheet. At the time, FTX claimed it was unable to meet customer withdrawal demands due to liquidity issues—hallmarks of insolvency.

However, SBF’s recent statement attempts to rewrite that narrative. He argues that, with time and proper asset management, all customer funds could have been returned. Legal experts and creditors have criticized this claim, suggesting it’s a strategic move to sway public opinion or impact ongoing legal battles.

What This Means for Customers and Crypto

SBF’s claim adds another layer of confusion for former FTX customers still awaiting clarity and reimbursement. While bankruptcy proceedings have revealed that some customer assets might be recovered, full repayment remains uncertain and heavily dependent on the liquidation of FTX’s remaining holdings.

For the broader crypto community, the statement revives questions about transparency, governance, and accountability within major crypto platforms. Whether true or not, SBF’s remarks underscore the need for stricter regulation and clearer safeguards to protect customer assets in the future.