Key Notes

SBF claimed that FTX was never insolvent but collapsed due to a liquidity-driven bank run.

He said that customers will recover up to 143% of their funds, with 98% already repaid more than owed.

Critics dismiss his defense as revisionist, noting that victims were repaid at 2022’s depressed valuations.

Sam Bankman-Fried, the founder of the bankrupt FTX exchange , claimed his platform was never truly insolvent but merely caught in a liquidity crunch.

In a 14-page document dated Sept. 30, 2025, the former FTX CEO claims that the exchange always had enough assets to repay customers, arguing that the ensuing bankruptcy was triggered by panic withdrawals rather than an actual balance sheet deficit. Related article: Proof of Reserves: Has Crypto Really Changed Since FTX Collap

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