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Sam Bankman-Fried, currently serving 25 years for defrauding FTX customers of $8 billion, claimed on X this week that he never voluntarily filed for bankruptcy and that lawyers at Sullivan & Cromwell unilaterally forced FTX.US into Chapter 11 to gain control of company assets and secure their legal fees.
The statements, supported by a sworn January 2023 court filing, challenge the official narrative surrounding FTX. US’s collapse and raise questions about attorney conduct during the bankruptcy proceedings.
According to SBF, conversations with his attorney, Mr. Miller, prior to the bankruptcy filing demonstrate that FTX.US remained financially capable of covering its obligations.
“FTX was never bankrupt. I never filed for it,” — Sam Bankman-Fried, via X.
He claimed that his technical team had confirmed that FTX.US wallets were unaffected by the wider customer deficit, and he intended for FTX.US to remain operational to repay shareholders.
However, SBF alleged that Miller insisted on including FTX.US in the FTX bankruptcy filing because the law firm Sullivan & Cromwell (S&C) required immediate payment of its retainer.
“FTX.US had the cash to pay S&C its retainer,” — court filing, January 2023.
SBF further claimed that Miller informed him S&C was “installing S&C’s guy” to run all affiliated companies and referenced over $200 million in LedgerX funds earmarked for legal costs.
The recent claims follow a direct response to Bitcoin trader Alex Wice, who described the FTX trial as a “kangaroo court.”
Wice argued that Judge Kaplan allegedly blocked key defense evidence, including solvency data, and disregarded the “relied on lawyers” defense that might have mitigated intent. SBF responded to Wice, saying: “Agree with almost all of this.”
The posts also highlight SBF’s broader allegations of prosecutorial misconduct during the case.
In a separate thread, he claimed that prosecutors deliberately withheld evidence favorable to the defense and exerted pressure on former FTX executives.
He specifically cited threats made to former executive Ryan Salame and claims that Salame’s pregnant fiancée was coerced to induce a guilty plea.
SBF is currently serving a 25-year sentence after being convicted on seven federal fraud charges related to FTX’s $8 billion loss.
His recent statements frame the FTX bankruptcy as “lawfare,” suggesting that legal maneuvers rather than financial necessity dictated the filing.
Experts note that these revelations, if substantiated, could have implications for how corporate bankruptcy filings are handled when high-profile law firms are involved.
“Allegations of forced bankruptcy filings raise important questions about fiduciary responsibility and attorney-client dynamics,” — corporate bankruptcy analyst, New York Legal Review.
While the court’s official records confirm the FTX bankruptcy filing, SBF’s posts and supporting filings have reignited debate among investors, legal analysts, and crypto observers regarding the collapse of one of the largest cryptocurrency exchanges in U.S. history.
Observers highlight that the controversy underscores continued uncertainty in the crypto sector, particularly regarding governance, regulatory oversight, and legal accountability.
The FTX bankruptcy has already had wide-ranging effects on market confidence, and SBF’s claims may further influence litigation and investor sentiment.
For policymakers and crypto investors, the case reinforces the importance of transparency and oversight in crypto exchange operations.
As SBF continues to voice his perspective through court filings and social media, discussions around the FTX bankruptcy remain highly charged and closely monitored by industry stakeholders, legal experts, and regulators alike.
