**FTX Founder Sam Bankman-Fried Claims Crypto Exchange Was Never Insolvent**
FTX founder Sam Bankman-Fried (SBF) has disclosed that the crypto exchange was never insolvent and has always maintained sufficient assets to repay all former customers. A report shared by SBF suggests that the company was on the verge of resolving its liquidity issues until external counsel took control.
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### Background: Legal Proceedings and Conviction
In a previous news brief, CNF reported that SBF has been sentenced to 25 years in prison. He was found guilty of multiple charges, including two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit money laundering, and one count of conspiracy to commit commodities fraud. Additionally, he was ordered to pay $11 billion in forfeiture for orchestrating several fraudulent schemes.
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### Allegations of Insolvency and SBF’s Response
Following the legal developments, rumors surfaced that FTX was unable to pay its debts. Many individuals took to X (formerly Twitter) to ask where the FTX funds had gone. In response, SBF has released a document asserting that both FTX and its sister company Alameda Research were never insolvent.
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### Key Points from SBF’s Document
According to the document:
– The companies’ assets have always exceeded their liabilities.
– Before the November 2022 crisis, FTX and Alameda held $25 billion in assets, $16 billion in FTX equity value, and $13 billion in liabilities, placing their net asset value around $28 billion.
– Although the value of these assets was severely affected by the crisis, the companies remained solvent.
– FTX was capable of repaying customers in full and in kind.
– Prior to external counsel taking over on November 11, 2022, the company was reportedly close to repaying customers.
– After the external counsel’s takeover, repayment schedules were delayed until 2025.
Regarding the whereabouts of the billions generated by the company:
– The document states that the money never left.
– Earlier statements mentioned customers would be repaid at between 119% and 143%.
– By September 2025, $1.2 billion in Solana (SOL) had been redeemed.
– Currently, 98% of creditors have been paid approximately 120%.
– The company claims to have paid $8 billion in claims and $1 billion in legal fees.
– Despite these payments, $8 billion remains.
In summary, SBF’s documentation insists that FTX was never insolvent, and there were always enough assets to cover all customer obligations — both at the time of the November 2022 crisis and today.
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### The Nature of FTX’s Crisis
According to the report, FTX’s difficulties stemmed from liquidity issues rather than insolvency. The company experienced a sudden shortage of cash, but there was an ongoing plan to resolve this by the end of the month — plans which were disrupted when the external counsel assumed control.
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### Recent Developments
SBF has recently become active on X, posting his first tweet in February 2025 after a hiatus since January 2023. Meanwhile, his parents have sought U.S. President Donald Trump’s intervention on his behalf. However, his political donations and criminal conviction complicate any such prospects.
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### About the Author
**John Kiguru** is a seasoned cryptocurrency and blockchain writer with extensive experience in the ever-evolving digital frontier. Holding a Bachelor’s degree in Geography and Economics, John blends his academic background with a keen interest in emerging startups, tokens, and the market dynamics of digital assets.
John’s dedication to the crypto and blockchain space is both professional and personal, allowing him to provide nuanced insights into the technology driving this revolutionary industry. With strong research skills and a commitment to staying ahead of trends, John is a trusted voice helping readers navigate the complex world of cryptocurrencies and blockchain innovation.
He also serves as an accomplished editor, bringing clarity and coherence to complex blockchain topics. John earned a Bachelor’s degree in Business, Management, Marketing, and Related Support Services from the University of Nairobi, enhancing his ability to communicate intricate concepts effectively.
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