- Sam Bankman-Fried disclosed in prison that FTX was never bankrupt and that he did not approve the Chapter 11 bankruptcy filing.
- He blamed outside lawyers for submitting a “fake” document to take control of the exchange.
- These statements contradict the court’s ruling that billions of dollars in customers have been lost.
Sam Bankman-Fried is now back in crypto news coverage, with new claims from prison that FTX never went bankrupt and shifts responsibility for the exchange’s collapse to lawyers who took control in November 2022.
SBF denies bankruptcy application from prison
In one of his recent comments that he posted via his X account, Bankman Fried has not stated that he ever declared bankruptcy on behalf of FTX. In his opinion, legal advisors took over the company and placed it into Chapter 11 without his consent a few hours later.
He described the filing as unlawful and claimed it was being used to extract value from the estate through legal fees. Bankman-Fried insists that FTX was still operational at the time and argues that the bankruptcy process itself caused long-term damage to customers and the platform.
Agree with pretty much everything.
But FTX has never been bankrupt. I never applied for it.
The lawyers took over the company and four hours later they filed for a fake bankruptcy so they could steal it for money. https://t.co/5YjqvPjFT3 pic.twitter.com/L7VWJK4Wny
— SBF (@SBF_FTX) February 10, 2026
Because US federal prisoners are not given unfettered access to social media, the messages are believed to have been passed through intermediaries, such as legal counsel or employees.
Read more: FTX quietly puts $79 million into Ethereum
Claims of solvency and liquidity stress
Bankman-Fried’s core argument is that FTX faced a short-term liquidity crisis rather than insolvency. According to him, the exchange had sufficient assets to meet customers’ obligations, and the problems only became serious when withdrawals increased.
He has several times cited crypto holdings, such as holding large token balances, as evidence that FTX could have stayed afloat over time. For him, a well-organized dismantling or further operation would have meant a more professional reimbursement from the customer.
Disputed lawsuit story
Bankman-Fried and advocates believe that important evidence was omitted to be used in the trial. They argue that the court has limited the debate on solvency, customers’ expectations of repayment and reliance on legal advice. These arguments are rejected by critics who point out that the fraud allegations were not based solely on snapshots of the balance sheet, but on misuse of funds and intent.
Read more: US demands 12-year prison sentence for Do Kwon after $40 billion Terra Crash shook crypto markets
Court Findings and the $8 Billion Gap
US prosecutors presented evidence that FTX improperly used customer deposits and transferred them to Alameda Research, resulting in the creation of a deficit of approximately $8 billion. Bankman-Fried was found guilty by a jury of seven counts of fraud and conspiracy, resulting in him serving a 25-year prison sentence.
Court documents reported that FTX was deeply insolvent after suppressed liabilities came to light. Although the bankruptcy estate has since recovered significant assets and creditors expect to recover nearly 100 percent through future recoveries, judges have said future recoveries do not change the nature of previous misconduct.
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