In the ever-evolving saga of FTX, Sam Bankman-Fried has made a bold claim about the embattled cryptocurrency exchange’s finances. According to a recent document dated September 30, 2025, he insists that the exchange was never truly insolvent and always had sufficient assets to repay its customers. Instead, he characterizes the situation more as a liquidity crisis—a classic example of a bank run—rather than a fundamental collapse of financial strength.
Bankman-Fried and his legal team argue that the estimated $8 billion owed to FTX customers at the time of the exchange’s tumultuous bankruptcy in November 2022 “never left” the company. In fact, he asserts that customers can expect to receive between 119% and 143% of their original claims, with approximately 98% of customers already repaid at an impressive recovery rate of 120%. Even after addressing the $8 billion in claims alongside $1 billion in legal fees, FTX’s estate reportedly retains another $8 billion. “In fact, FTX was never insolvent,” wrote Bankman-Fried, emphasizing his perspective on this contentious issue.
As the narrative unfolds, Bankman-Fried likens the FTX collapse to a conventional bank run, revealing his assertion that panic-driven withdrawals surged to billions in a matter of days. The paper suggests that the company was actively pursuing asset sales and financing options while still generating trading fees during this tumultuous time. By late November 2022, he emphasizes, negotiations were underway to resolve the liquidity crunch, and customer withdrawals were starting to normalize.
[SBF says:] This is where the money went. https://t.co/HVRwEw5Z1k https://t.co/5DrA13L5YE
Challenging early assertions made by the bankruptcy team, Bankman-Fried’s camp argues that assets held by FTX and its sister trading firm Alameda exceeded liabilities through 2021 and into the late summer of 2022. They refer to documents from January 2023 as evidence that, at the time of the filing, the value of their assets was roughly equal to or even surpassed the claims made by customers. This defense places significant blame on the decisions made during the bankruptcy process, stating that these choices exacerbated value erosion and delayed payouts.
Interestingly, Bankman-Fried points out several assets that have appreciated significantly since the FTX liquidation process began. His team cites investments in tokens and startups such as Solana, Sui, and Anthropic, suggesting that these positions, if retained through the market rebound, would have yielded far greater value today. They argue that the timing of asset sales, which they claim favored insiders and incurred excessive professional fees, prevented the estate from maximizing recoveries.
Moreover, the approach to payouts has raised eyebrows. Creditors are receiving the dollar equivalent of their cryptocurrencies as of November 11, 2022, rather than the actual coins—an approach critiqued for stripping customers of potential gains as the crypto market has experienced a significant rally since then. This method has frustrated many who feel they are missing out on the benefits of the recovery.
It’s crucial to keep in mind the context of FTX’s dramatic rise and fall. At its zenith, the exchange was valued over $30 billion and boasted more than one million users. However, its implosion came shortly after overwhelming evidence showcased the entangled risks between FTX and Alameda, accompanied by a rush of withdrawal requests and a failed emergency rescue attempt. Following a 2023 trial, Bankman-Fried was convicted on multiple counts and sentenced to 25 years in prison, a verdict he is currently appealing.
The estate argues it has strived to maximize customer recoveries through asset management and litigation successes that have contributed to increased payout estimates. For smaller creditors, quick and certain access to cash has taken precedence, even at the cost of forgoing potential gains in the crypto market. In stark contrast, shareholders are left reeling, recovering only a fraction of what they initially invested.
This situation marks a potentially pivotal moment for the cryptocurrency industry, as the near-full recovery of customer funds based on petition-date values could set a precedent amidst major exchange collapses—a rarity that could redefine how such challenges are navigated in the future. While debates continue over whether repayment arrangements should organically include cryptocurrencies instead of fiat dollars and whether asset sales were executed too hurriedly, Bankman-Fried’s recent document attempts to reframe the narrative of FTX’s turmoil. “The answer is they never left,” he asserts about customer funds, concluding that full repayment was possible back in 2022 if control had not shifted to legal advisors and the courthouse.
As this intriguing chapter unfolds, the courts will ultimately weigh in on whether Bankman-Fried’s claims hold water, but the landscape of insolvency in the crypto world may never look the same again. The FTX case will likely serve as a case study in how to manage an exchange during turbulent market conditions—an issue that remains profoundly relevant in today’s cryptocurrency climate.
For those interested in diving deeper into the world of cryptocurrency recovery processes, check out more insights on CoinDesk and CoinTelegraph.