Sam Bankman Fried and his team have released a document claiming that FTX was never truly bankrupt, even when the exchange was officially placed into bankruptcy in November 2022. According to their report, over seven million customers had deposited around twenty billion dollars into FTX, and while the company owed eight billion dollars at the time of the collapse, the funds were never gone.
The paper argues that after two years of review, the estate revealed FTX had enough assets to repay all customers in full. It states that creditors are now being paid between one hundred nineteen and one hundred forty three percent of what they were owed. Around ninety eight percent of creditors have already received at least one hundred twenty percent, while the estate still holds about eight billion dollars after paying legal and claim costs.
Sam and his team claim that the real issue was not insolvency but a temporary liquidity crisis, suggesting that FTX had enough assets but not enough cash flow to meet withdrawals. They also imply that the decision to file for bankruptcy was made too quickly by external legal advisers who took control during the panic.
If true, these claims could reshape the public view of what happened inside FTX. They paint a picture of an exchange that suffered a short term liquidity squeeze rather than an outright collapse. However, many in the crypto community remain skeptical, waiting for official confirmation and court backed evidence to support these new allegations.