In a stunning development reverberating through the crypto world, an account widely believed to be linked to the disgraced founder of FTX, Sam Bankman-Fried (SBF), has published a document asserting that the fallen exchange was, in fact, “never bankrupt.” This audacious claim, surfacing on October 31, 2025, directly contradicts the established narrative of FTX’s catastrophic collapse and SBF’s subsequent conviction for fraud, sparking immediate speculation and reigniting controversy surrounding one of crypto’s most infamous sagas.

FTX’s Infamous Collapse Recalled

It was less than three years ago, in November 2022, that the cryptocurrency exchange FTX, once valued in the tens of billions, imploded spectacularly. The collapse sent shockwaves across the digital asset landscape, wiping out billions in customer funds and leading to a severe market downturn. Sam Bankman-Fried, the charismatic figurehead, was arrested, extradited, and ultimately convicted on multiple counts of fraud and conspiracy in November 2023. The consensus has always been that FTX suffered from severe mismanagement, commingling of customer funds with its sister trading firm Alameda Research, and ultimately, a gaping hole in its balance sheet rendering it deeply insolvent.

The ensuing bankruptcy proceedings, overseen by CEO John Ray III – known for his work on Enron’s liquidation – have been a lengthy and complex affair, focused on identifying assets and compensating defrauded customers and creditors. Ray himself has repeatedly characterized FTX’s records as among the worst he has ever seen, indicating a profound lack of financial controls and accountability.

The ‘Never Bankrupt’ Document Surfaces

The document, posted from an account widely believed to be operated by or on behalf of Bankman-Fried, presents an alternative interpretation of FTX’s financial state at the time of its downfall. While the exact contents are still being scrutinized, early reports suggest it attempts to portray FTX as having sufficient assets to cover customer liabilities, arguing that its insolvency was a manufactured crisis rather than a genuine financial deficiency. The argument hinges on specific interpretations of asset valuations and the legal definition of bankruptcy, aiming to reframe the narrative from one of outright fraud to perhaps mismanagement or a liquidity crunch exacerbated by external factors.

Key points highlighted in the document reportedly include:

• Asset Revaluation: A claim that certain illiquid assets or internal tokens were undervalued at the time of the bankruptcy filing, leading to an inaccurate assessment of solvency.
• Solvent Operations: Assertions that FTX’s core exchange operations were fundamentally solvent prior to the “bank run” triggered by public revelations.
• External Pressures: Implication that external market forces and media narratives unfairly precipitated the crisis, preventing the exchange from recovering.

Legal Ramifications and Creditor Payouts

This new claim introduces a highly complex and potentially disruptive element into the ongoing FTX bankruptcy proceedings. While Sam Bankman-Fried has already been convicted, an argument that FTX was “never bankrupt” could be a strategic maneuver related to his appeal, or an attempt to influence the court of public opinion. For creditors, whose hopes have slowly risen with the prospect of partial recoveries, this claim could be a double-edged sword:

• Increased Uncertainty: It risks injecting fresh uncertainty into a process that has only recently begun to stabilize, potentially leading to further legal challenges and delays.
• Potential for New Scrutiny: While unlikely to overturn the entire bankruptcy process, it could prompt additional scrutiny into specific aspects of asset valuation or recovery strategies.
• Emotional Impact: For victims, such claims can be incredibly frustrating, feeling like a re-litigation of settled facts and an attempt to evade responsibility.

Legal experts generally view such claims with skepticism, especially given the overwhelming evidence presented during SBF’s trial and the efforts of the current FTX management to recover assets. However, any new legal argument, however tenuous, requires careful consideration within the court system.

Market and Public Perception

The immediate market reaction has been one of cautious observation. While not directly impacting current crypto prices significantly, the news reinforces a sense of lingering instability and the long tail of past scandals. Public perception, particularly among those who lost funds, is likely to be overwhelmingly negative, viewing the claim as a desperate attempt to rewrite history. For the broader crypto industry, it serves as a stark reminder of the importance of transparency, robust financial controls, and regulatory oversight.

Conclusion

The assertion from an SBF-linked account that FTX was “never bankrupt” is a bold and controversial statement that challenges the very foundation of one of crypto’s most damaging episodes. While its practical legal impact remains highly dubious given SBF’s conviction and the progress of the bankruptcy estate, it nonetheless guarantees continued public debate and scrutiny. As the crypto world watches for further developments, this claim underscores the enduring legacy of the FTX collapse and the ongoing quest for justice and resolution for its many victims.

ADENIYI OLOWOPOROKU