Convicted FTX founder Sam Bankman-Fried has issued a 15-page report from prison dated September 30, directly challenging the established narrative surrounding his cryptocurrency exchange’s collapse. The document contends that FTX was never technically insolvent when it failed in November 2022, but instead faced a severe liquidity crisis triggered by customers withdrawing approximately $5 billion within a two-day period.
Bankman-Fried’s analysis suggests the exchange maintained substantial asset value that could have potentially covered customer obligations, contradicting widespread allegations of fundamental insolvency. The report represents his latest attempt to reframe the circumstances of FTX’s dramatic downfall, which sent shockwaves through global cryptocurrency markets and resulted in multiple criminal convictions.
The timing of this document coincides with ongoing legal proceedings and raises questions about asset valuation methodologies during market turmoil. Industry analysts note that the distinction between illiquidity and insolvency remains crucial in bankruptcy proceedings, though regulators have consistently maintained that FTX’s operations crossed legal boundaries.
This development comes as former FTX executives continue cooperating with authorities while the exchange’s bankruptcy estate works to maximize recoveries for affected customers and creditors worldwide.
