The FTX collapse continues to spark controversy as jailed former CEO Sam Bankman-Fried pushes back against the long-standing bankruptcy narrative. In new statements, he claims the crypto exchange was never truly insolvent, reigniting debate across the crypto industry and drawing sharp reactions from both legal experts and the wider digital asset community.
Bankman-Fried Claims “Bogus Bankruptcy” in New Statements
In a recent post on X, Sam Bankman-Fried claimed that the FTX exchange was never bankrupt and insisted he personally did not file for bankruptcy. According to the former CEO, lawyers took control of the firm and filed what he described as a “bogus” bankruptcy claim to extract fees from the process.
Interestingly, Bankman-Fried backed these bold claims with screenshots from a 2023 court declaration showing discussions among the former CEO, FTX US General Counsel Ryne Miller, and representatives from Sullivan & Cromwell, the law firm serving as lead bankruptcy counsel for FTX.
According to the disclosure, Bankman-Fried claimed FTX US was not affected by the liquidity crisis that followed the misappropriation of customer funds. However, he alleges that legal representatives disagreed, instead arguing that FTX US had enough cash to cover Sullivan & Cromwell’s retainer fee and should therefore be included in the bankruptcy filing.
Bankman-Fried also claimed he told the lawyers that it was not proper to sacrifice FTX US to fund or support the bankruptcy proceedings of FTX International or the Alameda Group. According to his statements, these concerns ultimately fell on deaf ears, and the exchange was still included in the broader bankruptcy process.
Legal Findings and Community Reaction Paint a Divided Picture
Despite Bankman-Fried’s assertions, prosecutors and bankruptcy administrators have consistently maintained that FTX suffered from severe financial mismanagement. Investigations have pointed to alleged misuse of customer funds, weak internal controls, and misleading financial reporting practices.
Also, Bankman-Fried’s recent post has stirred mixed feelings among members of the crypto community. The majority of responses reportedly attacked the former CEO’s claims, with some users accusing him of using investor funds to run what they described as a Ponzi-like scheme. However, a smaller segment of the community argued that there may be more to the case, suggesting that the former CEO’s claims may contain some truth.
Legal experts also emphasize that insolvency is often determined by a company’s ability to meet obligations when due, not simply by whether assets exist on paper. In the case of FTX, the sudden surge in customer withdrawal requests exposed what investigators described as critical liquidity gaps.
FTX Collapse: An Event That Reshaped the Entire Crypto Market
Meanwhile, the FTX saga will not be quickly forgotten by the crypto market. The collapse of what was then the third-largest cryptocurrency exchange triggered a deep crypto winter. The market shock led Bitcoin to fall from its all-time highs to below $15,000, while many digital assets plunged to multi-year lows.
Beyond price declines, the fallout accelerated global regulatory scrutiny, forced exchanges to improve transparency, and pushed the industry toward proof-of-reserves models. Even today, the psychological impact of the collapse continues to influence investor behavior.
Regardless of how Bankman-Fried’s claims are received, the FTX saga stands as a defining chapter in crypto history, reshaping trust, regulation, and risk awareness across the entire digital asset ecosystem.
Evans Kelvin
The CoinRemark Team
Brenda Kanana
