Imprisoned Sam Bankman-Fried has once again found himself at the center of controversy after directly refuting what he called the “10 myths” surrounding the collapse of FTX.
On February 21 (local time), FTX founder Sam Bankman-Fried released a statement through social media from prison, denying key allegations surrounding the exchange’s bankruptcy and his criminal conviction. He claimed that the prosecution’s case theory, the bankruptcy proceedings, media coverage, and the overall trial process were distorted.
Bankman-Fried first denied the core allegations that FTX was insolvent and that $8 billion in customer funds had vanished. He argued that FTX had in fact been solvent and claimed that customers are currently receiving between 119% and 143% of their claims in repayment. He also categorically denied allegations of extravagance and party culture within the company, stating that he had rented only 10% of a penthouse for six months at a cost of $50,000.
He presented a different account of the circumstances surrounding the bankruptcy filing. Contrary to the prevailing view that FTX filed for bankruptcy because it could not meet massive withdrawal demands, he asserted that funding proposals to fill liquidity gaps were secured within three days and that withdrawals had begun to resume. Nevertheless, he criticized the legal team for proceeding with the bankruptcy filing. He also denied allegations that he created a “secret backdoor” for Alameda Research, emphasizing that the account features had legitimate purposes and did not allow borrowing beyond customer funds.
He continued to raise issues regarding the trial process. He argued that the U.S. Department of Justice and the bankruptcy administrators controlled the narrative of the case and access to evidence. In particular, he criticized Judge Lewis Kaplan for allegedly depriving him of a fair trial by excluding evidence favorable to him, limiting his defense strategy, and revoking his bail. He claimed that the revocation of bail was not due to witness intimidation but rather the exercise of his First Amendment right to free speech.
Bankman-Fried is currently pursuing a retrial in New York. Although there had been speculation about the possibility of a pardon similar to the case in which President Donald Trump pardoned former Binance CEO Changpeng Zhao (CZ), such expectations have significantly diminished. His latest statement underscores that the debate over responsibility for the FTX collapse is far from over.
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