The account was once used by Sam Bankman Fried, the founder and former CEO of the bankrupt cryptocurrency exchange FTX. Posted In a link to a document filed by X late Thursday, the company claims it is never bankrupt, echoing claims made in a court case several years ago.
A 14-page document purportedly written by the disgraced prodigy and his team argues for a Manhattan jury that the exchange did not go bankrupt because of a widespread scheme to commit fraud and embezzle $10 billion in customer funds. Found In 2023.
Instead, FTX faced a “liquidity crisis” that was “scheduled to be resolved by the end of the month” but was reportedly disrupted by “FTX’s outside counsel” taking control. The document goes on to say that “even if the lawyers forced FTX into bankruptcy, FTX never went bankrupt.”
This story reflected elements of interviews conducted by Bankman Freed. behind the bar He told conservative political commentator Tucker Carlson in March that the company “had enough money” to repay all its creditors at the time of the exchange’s collapse.
When FTX went bankrupt in 2022, the company had $25 billion in assets with an “FTX stock value” of $16 billion against $13 billion in debt, the documents allege.
The documents allege that FTX and sister company Alameda Trading would have held assets worth an estimated $136 billion if the lawyers had not sold the assets the companies had invested in.
This will include a $14.3 billion stake in artificial intelligence startup Anthropic, a $7.6 billion investment in retail brokerage Robinhood, and 12 other assets.
This includes XRP-linked fintech Ripple and Bitcoin mining company Genesis Digital Assets. FTX Recovery Trust submitted Genesis filed a digital assets lawsuit last month seeking to recover $1.15 billion misappropriated by Bankman Freed.
If FTX and Alameda still existed, the exchange’s FTT tokens would be worth nearly $22 billion, the document claims. Prosecutors said in Bankman Fried’s criminal trial that assets such as FTT were used for the following purposes: support Alameda.
Two weeks ago, conservative activist Laura Loomer make a claimd on X reported that a “massive and well-funded” effort is underway to persuade US President Donald Trump to pardon Bankman Fried.
Binance founder Changpeng Chao is a former rival of Bankman Freed. spurred on FTT, the world’s largest cryptocurrency exchange, was later pardoned by President Trump for violating US anti-money laundering laws.
Before sentencing Bankman Fried to 25 years in prison in 2024, U.S. District Judge Lewis Kaplan said, “Thieves who successfully take their loot back to Las Vegas and gamble their stolen money are not entitled to a reduced sentence.”
