SBF claims FTX was never truly bankrupt and alleges company lawyers staged a bogus bankruptcy filing to enrich themselves.

Sam Bankman-Fried has publicly renewed his claim that FTX was never truly bankrupt, alleging that the company’s U.S. bankruptcy filing was effectively engineered by outside lawyers to seize control of the exchange and generate massive legal fees. In the 𝕏 post referenced, he asserts that FTX was solvent at the time of the November 2022 Chapter 11 filing and that the bankruptcy process was unnecessary and orchestrated by the law firm leading the restructuring, casting the filing as a “bogus” move that enriched the professionals involved rather than protecting customers. These claims directly conflict with the findings of U.S. regulators, prosecutors, the criminal court, and the FTX bankruptcy leadership. FTX and more than 100 affiliated entities entered Chapter 11 in November 2022, after public revelations that the exchange could not meet customer withdrawals and faced an estimated multibillion‑dollar shortfall in customer assets. Subsequent investigations and a federal criminal trial concluded that Bankman-Fried had misappropriated billions in customer deposits, leading to his conviction on seven counts of fraud and conspiracy and a 25‑year prison sentence. The current FTX CEO, John J. Ray III, and the estate’s lead counsel, Sullivan & Cromwell, have stated that they inherited a “dumpster fire” of commingled funds and poor record‑keeping, and that the restructuring process has focused on locating and recovering assets for customers rather than staging a sham bankruptcy. Bankman-Fried and his supporters have argued in post‑trial filings and public commentary that Sullivan & Cromwell pushed FTX into bankruptcy and profited from the case, but court‑supervised fee awards and judicial oversight govern those payments, and no court has accepted his narrative that the filing itself was fraudulent.

✨ AI-generated background, compiled from web sources — not editorial content.

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