SBF's X account claims company was never bankrupt despite legal filing

Key Takeaways

• Sam Bankman-Fried says that the exchange was not actually bankrupt, despite official Chapter 11 filing in November 2022.
• He is challenging the prevailing narrative about FTX's financial collapse.

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Sam Bankman-Fried, through his representative, on Thursday claimed on X that the defunct cryptocurrency exchange was never actually bankrupt, despite filing for Chapter 11 bankruptcy protection in November 2022. Sam Bankman-Fried, the exchange’s founder, and his associates are challenging the legal narrative around FTX’s collapse through public statements.

Recent posts on X from Bankman-Fried highlight explanations of fund movements, supporting allegations that the exchange’s bankruptcy filing overlooked key assets. The team argues that certain parts of the exchange remained solvent when bankruptcy proceedings began.

Public statements in recent weeks emphasize that the decision to initiate bankruptcy was premature. The claims come as ongoing discussions continue about efforts to recover user funds from the exchange’s estate.

FTX filed for bankruptcy in November 2022 amid allegations of mismanaged customer funds and financial irregularities. The exchange’s collapse sent shockwaves through the crypto industry and led to Bankman-Fried’s arrest and subsequent legal proceedings.