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- Bankman-Fried claims FTX was solvent and alleges lawyers pushed a false bankruptcy to gain control.
- FTX.US is portrayed as asset-backed, with a potential sale option ignored before bankruptcy action.
- Lawyers are accused of securing FTX control to access funds, intensifying debate over the collapse.
FTX founder Sam Bankman-Fried has made new accusations about the collapse of the crypto exchange. He said on X that FTX was never bankrupt. SBF claimed that lawyers pushed a “bogus” filing to gain control of company assets. He posted excerpts from court records and commentary to support these claims.
Bankman-Fried said he never approved a bankruptcy filing. He stated that he warned leadership that FTX.US had enough assets. According to wallet checks, U.S. customer funds were unharmed, he added. He argued that the unit did not face a shortfall.
FTX Bankruptcy Driven by Legal Team
He said he advised executives to avoid bankruptcy unless there were clear signs of insolvency. SBF asserted that they could have sold the U.S. business. He noted that such a sale could have supported preferred shareholders. He insisted that the option was never explored.
According to him, the bankruptcy decision came from legal advisers. Ryan Miller, a former executive, advised him to include FTX.US. He said the reason was to fund the retainer for Sullivan & Cromwell. He added that the firm would not proceed without payment.
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Bankman-Fried also claimed that lawyers quickly secured internal control. He said Miller told him that a representative chosen by the firm would run all FTX entities. SBF proposed the removal of leadership authority. He described the shift as abrupt and unexplained.
Legal Conflicts and Cost Concerns Intensify
He questioned the firm’s role and raised concerns about conflicts. SBF said he objected to selecting that law firm. He cited high costs and potential claims issues. He also said Miller mentioned more than $200 million at LedgerX. SBF said Miller planned to send those funds to the firm.
However, Bankman-Fried stated that these actions gave higher priority to legal costs than the stability of the company. He said these actions were bad for the customers. He emphasized that these actions bypassed the management.
The strongest statement was his claim that the company was never insolvent. He said he never initiated the filing. The lawyers did it within hours of taking charge. He emphasized that the filing gave them access to the company’s resources.
The statements from Bankman-Fried highlight the collapse of the exchange. These statements raise concerns regarding the treatment of FTX.US customers.
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