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New report by SBF says FTX collapse was mismanaged, not fraud

New report by SBF says FTX collapse was mismanaged, not fraud

A social media account once linked to Sam Bankman-Fried, the imprisoned founder of FTX, posted a 14-page document on X late Thursday, reigniting debate over the 2022 collapse of the crypto exchange.

Titled “FTX: Where Did The Money Go?”, the report argues that FTX was never actually insolvent and that the company’s bankruptcy resulted from mismanagement and external interference rather than fraud. 

Bankman-Fried and his team contend that the exchange faced only a short-term liquidity crunch that could have been resolved within weeks had lawyers not intervened.

According to the document, FTX held around $25 billion in assets and $16 billion in equity value against $13 billion in liabilities before its collapse. It further claims that, had FTX and its trading arm Alameda Research continued operating, their combined portfolio might have been worth $136 billion today. 

Among its investments, the report cites significant stakes in Anthropic, Robinhood ($7.6 billion), and holdings in Ripple and Genesis Digital Assets.

Bankman-Fried asserts that, even after paying $8 billion in claims and $1 billion in legal fees, the FTX estate still holds $8 billion, suggesting that customers could be repaid 119% to 143% of their original balances. 

The report also reiterates that roughly 98% of creditors have already received about 120%, though critics note these repayments are made in U.S. dollars based on 2022 prices, not in crypto equivalents.

The report accuses law firm Sullivan & Cromwell and current FTX CEO John J. Ray III of forcing the exchange into unnecessary bankruptcy “to seize control” of its assets and generate professional fees. Bankman-Fried alleges the company “was never bankrupt, even when its lawyers placed it into bankruptcy.”

The claims sharply contradict the findings of a Manhattan jury that convicted Bankman-Fried of defrauding investors and misusing customer funds.