Sam Bankman-Fried X Account: FTX Was Never Insolvent, Lawyers Cost Investors $66 Billion
A document posted on Sam Bankman-Fried’s X account claims the defunct FTX crypto exchange was never insolvent and that its lawyers’ decision to place it into bankruptcy cost investors $66 billion. The document, which says it was written by Bankman-Fried and his team, argues that the exchange faced only a temporary liquidity crunch that was “on track to be resolved by the end of the month” before outside counsel intervened. It accuses Sullivan & Cromwell and former FTX executives of coordinating to seize control of the company. The document says that lawyers were “heavily incentivized” to push FTX into bankruptcy so they could oversee its assets, a move it says derailed recovery efforts. It added that customers could have been repaid “in full, in kind,” with $111 billion left for investors if the exchange had continued operating. “The lawyers then quickly launched a campaign to blame Bankman-Fried for the bankruptcy they c...