SBF: FTX didn't go bankrupt at all! Customers could have withdrawn their coins in full, but it turned into a disaster of 130 billion dollars.

SBF helped release a lengthy article from prison through his “fren”. He stated that FTX was still solvent during the liquidity crisis in 2022, and it was due to the involvement of external lawyers that customers faced delays until 2025 to receive compensation, which caused significant losses for equity investors. (Background: SBF's prison greeting stirred huge waves: after a six-month hiatus, he sent a “gm”, and FTT pumped 45%) (Background: Three Arrows Capital (3AC) summons SBF and other FTX executives to court: accused of illegally liquidating $1.5 billion positions) Currently serving his sentence in prison, SBF once again helped publish a lengthy article titled “FTX: Where Did The Money Go?” on his X account this morning. He stated: “Despite facing a liquidity crisis, FTX was never actually insolvent and had sufficient assets to fully repay all customers in physical form by the end of 2022.” However, due to the intervention of external legal advisors and the subsequent bankruptcy proceedings, customers were delayed until 2025 to receive compensation, and the compensation was in “dollarized” form rather than physical cryptocurrency, while equity investors also suffered huge losses… [SBF says:] This is where the money went. pic.twitter.com/O6q77DvmTn — SBF (@SBF_FTX) October 31, 2025 The original link to SBF's article is here, and BlockTempo quickly summarized the key points as follows: SBF believes that if lawyers had not taken over FTX, all customers should have received full compensation in physical form in 2022, and equity holders would also have realized significant value. When the liquidity crisis erupted in November 2022, FTX and its affiliate Alameda had $25 billion in assets and $16 billion in FTX equity value, with liabilities of $13 billion, resulting in a net asset value of about $28 billion. Even at the peak of the crisis, the company remained solvent. At that time, FTX was actively seeking solutions and had begun to pay customers, expecting to resolve the liquidity crisis by the end of 2022. Actual events and controversies However, the actual situation was drastically different from expectations. SBF attributed this to the actions of the bankruptcy team, which led to a two-year delay and the erosion of the company's equity value. Delayed compensation and dollarization: Customers were supposed to receive compensation in 2022 but were pushed back to 2025. More controversially, customers received the dollar value as of the bankruptcy application date on November 11, 2022, rather than physical cryptocurrency. For example, if a customer was owed 1 Bitcoin (worth about $17,000) at that time, they would still receive $17,000 now, rather than the current value of 1 Bitcoin, which is far higher. This resulted in many customers missing out on the subsequent rise in the cryptocurrency market. Equity investors' losses: Equity investors invested about $1.95 billion but only recouped $230 million, which is only a small fraction of their investment. Lawyers' takeover and bankruptcy application: The article accused Sullivan & Cromwell (S&C) law firm of taking over FTX with the total legal counsel of FTX US Ryne Miller and CEO Zach Dexter. Within hours of the takeover, lawyer John J. Ray III filed for bankruptcy for FTX and Alameda and hired S&C as bankruptcy legal advisors. The article suggests that lawyers had a strong motivation to file for bankruptcy because once they controlled the debtor's assets, they could decide on their own fees from the billions of dollars at FTX. False statements and asset undervaluation: The bankruptcy team and prosecutors were accused of distorting facts in court and public statements, claiming that FTX was “hopelessly insolvent” and that “assets were less than liabilities”. However, the article provided data showing that at the end of 2021, and in June, September, and November 2022, Alameda and FTX's assets far exceeded their liabilities. For instance, during the liquidity crisis in November 2022, FTX had $25 billion in assets and $13 billion in liabilities. However, the bankruptcy team initially only claimed that FTX had $1 billion in assets. Asset erosion: The article detailed the asset losses caused by the bankruptcy team, totaling over $120 billion: Company shutdown: FTX incurred about $3 million in costs per day before being shut down, amounting to about $1 billion annually. The company's valuation once reached $40 billion but was deemed “worthless” after the lawyers took over, leading to investor losses of about $66 billion. Abandonment of FTT tokens: The bankruptcy team regarded FTT tokens related to FTX's value as “worthless” and completely abandoned them, causing stakeholders to lose about $22 billion. Low-priced sale of investments: The bankruptcy team sold several of FTX's investments at prices far below market value, such as selling equity in Sui for less than $100 million, while its real value was $2.9 billion; equity in Anthropic was sold for a profit of $900 million, while its real value was $14.3 billion; Solana tokens were sold for $3.3 billion, while their real value was $12.4 billion; Robinhood equity was sold for $600 million, while its real value was $7.6 billion. High legal and consulting fees: S&C law firm paid itself nearly $250 million in consulting fees, and during the entire bankruptcy process, $948 million was paid to consultants, with an additional $449 million reserved for future work. Government claims: The bankruptcy team allocated $17 billion for government claims before repaying customers and investors. Justification or truth? SBF concluded in the article that all these actions: shutting down the company, abandoning FTT, selling assets at low prices, paying high legal fees, paying interest, and making huge payments to the government… were all to prove the bankruptcy team's self-fulfilling prophecy of being “hopelessly insolvent”. But releasing this article now seems too late, even an attempt to evade responsibility, and the community's current response is mostly not buying SBF's narrative… This article has just been published, will experts with knowledge of the situation come out to contradict? BlockTempo will continue to track this for you. Related reports FTX is repaying! The third round of payment distribution starts on September 30! A total of $1.6 billion When FTX's Chinese creditors are discriminated against, how can they reclaim $380 million? <SBF: FTX was never bankrupt! Customers could have received full coins, but it turned into a $130 billion disaster> This article was originally published by BlockTempo, “BlockTempo: The Most Influential Blockchain News Media.”