- SBF mentioned FTX has by no means been bankrupt or filed for chapter.
- He says his legal professionals seized the corporate and instantly filed a false chapter petition.
- Court docket information and specialists point out there was vital monetary mismanagement.
Sam Bankman Fried, former CEO of the defunct FTX alternate, reiterated his controversial declare that the alternate was not truly bankrupt when it declared chapter in November 2022. “FTX was by no means bankrupt. I by no means filed for chapter,” he mentioned in a submit to X.
He recommended that legal professionals promoted the submitting to serve their very own pursuits, seizing the corporate and shortly submitting what he referred to as a “sham chapter.” He beforehand mentioned FTX’s U.S. department was solvent on the time of the pockets overview and mustn’t have been a part of the chapter.
Bankman Fried additionally criticized the Biden administration, saying its complete prosecution and chapter case was politically pushed and a type of political coercion.
These claims reiterate claims he has been making for a while each on-line and in court docket paperwork.
authorized info
FTX formally filed for chapter in Delaware in November 2022 after a sudden liquidity disaster resulting from massive buyer withdrawals and lack of confidence.
Mr. Bankman Freed was subsequently convicted on seven counts of significant fraud, and the trial discovered that billions of {dollars} in buyer funds had been misused, leaving an $8 billion gap in buyer funds.
He’s presently serving a 25-year jail sentence that shall be sentenced in 2024.
Opposite to the previous CEO’s statements, court docket information and specialists concerned within the chapter present that there was critical monetary mismanagement and a scarcity of management, and that FTX and its sister firm Alameda misappropriated buyer funds.
A former restructuring officer concerned within the case on the time mentioned record-keeping and enterprise administration had been in abysmal situation, belying the corporate’s claims that it was financially sound. Moreover, court docket filings present that FTX apparently by no means held a board of administrators assembly, and the cryptocurrencies deposited by clients weren’t even recorded on its monetary books.
Though Mr. Bankman Fried cites particular paperwork in his submit, his assertions don’t change the official judgment of the court docket or the fact that the chapter petition was legally processed and accepted.
Although President Trump mentioned in January that he had no plans to pardon Sam Bankman Fried, current posts and the politically motivated angle criticizing Biden look like his means of making an attempt to court docket Donald Trump in hopes of receiving a pardon.
Associated: FTX victims settle with legislation agency Fenwick & West in 2026
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