In a surprising new statement, Sam Bankman-Fried (SBF), the former CEO of FTX, has claimed that the crypto exchange was never actually bankrupt. According to him, FTX still had assets and solvency options at the time it was placed under Chapter 11 bankruptcy protection. He blames the move on the exchange’s legal team, stating it was done without his full agreement.
This bold assertion reignites discussions around the sudden downfall of what was once one of the world’s largest cryptocurrency exchanges. SBF’s statement contradicts the narrative built by bankruptcy lawyers and court documents, which painted FTX as financially unstable and unable to meet customer withdrawals.
Legal vs. Leadership: A Deepening Divide
The bankruptcy of FTX in November 2022 sent shockwaves through the crypto industry, wiping out billions in customer funds and shaking trust across markets. SBF now claims that, contrary to public belief, FTX had enough liquidity to avoid collapse—but was pushed into bankruptcy by aggressive legal maneuvering.
This conflict between SBF and FTX’s legal team reveals a deeper power struggle behind the scenes. It also raises questions about the motivations and decisions that led to the abrupt filing, especially given SBF’s earlier promises to secure emergency funding and restore customer access.
JUST IN: Sam Bankman-Fried says "FTX was never bankrupt, even when its lawyers placed it into bankruptcy." pic.twitter.com/Vs04cIzBcb
— Watcher.Guru (@WatcherGuru) October 31, 2025
Implications for the Crypto World
SBF’s latest claim could impact ongoing legal proceedings and influence how regulators and the public view corporate governance in crypto firms. If proven true—or even partially accurate—it might suggest that mismanagement wasn’t the sole reason behind FTX’s downfall.
However, many remain skeptical. Courts have already accused SBF of fraud and misappropriation of funds, and this new statement may be seen as an attempt to rewrite history rather than a revelation of hidden truth.