“FTX Was Never Bankrupt”: SBF Reveals Explosive Allegations

In a shocking revelation on X, FTX founder Sam Bankman-Fried has claimed that the cryptocurrency giant was never bankrupt and accused the lawyers overseeing the company of orchestrating a “bogus” bankruptcy filing to gain control of its assets.

Bankman-Fried shared a court document screenshot and commentary, emphasizing that he never filed for bankruptcy himself and that his warnings to the law firm Sullivan & Cromwell (S&C) and company executives were ignored.

“FTX.US Should not have Filed Bankruptcy”

According to Bankman-Fried, he advised FTX.US leadership that bankruptcy was unnecessary: “I then told Mr. Miller that FTX.US should not file bankruptcy at all until it was certain that there were insufficient assets at FTX.US… the tech team checked the wallets and had told the FTX International general counsel at the time of the disclosure of the customer deficit that FTX.US was not affected.”

He further emphasized that FTX.US could have been sold as a going concern, which would have allowed preferred shareholders to be paid back.

Lawyers Take Control, Push Bankruptcy

Bankman-Fried claims the decision to file for bankruptcy came from lawyers rather than management: “Mr. Miller stated that he needed to include FTX.US as part of the bankruptcy because FTX.US had the cash to pay S&C its retainer. Without this retainer from FTX.US, S&C wouldn’t file.”

He alleged that the law firm then placed their own representative in charge of all FTX entities: “Mr. Miller informed me that S&C was installing ‘S&C’s guy’ to run all the companies.”

Conflict of Interest and Misused Funds

The FTX founder also criticized S&C’s role and questioned the firm’s conflicts of interest and costs: “I told Mr. Miller that S&C was not the proper law firm to select because of the claims and conflicts, as well as the exorbitant costs of the firm. Mr. Miller told me that there was over $200 million cash in LedgerX and that he was going to send these funds to S&C, and that bankruptcy legal costs were therefore not a problem.”

Bankman-Fried implies that the lawyers prioritized their financial gain over proper management of the exchange.

Bankman-Fried’s most striking claim is clear and direct: “FTX was never bankrupt. I never filed for it. The lawyers took over the company and 4 hours later they filed a bogus bankruptcy so they could pilfer it for money.”

This statement underscores a growing controversy over how FTX International collapsed and the treatment of FTX.US customers.

This is a developing story, and more details are expected as additional court documents and clarifications become available.

Also Read: SBF Claims DOJ Used “Political Lawfare” to Secure FTX Conviction

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

---

---