Sam Bankman-Fried’s Team Claims “FTX Was Never Insolvent”: Crypto Community Remains Skeptical

On Friday, the team associated with Sam Bankman-Fried (SBF) made a surprising announcement regarding the financial status of the once-popular cryptocurrency exchange, FTX. According to the team, the exchange had $137 billion in holdings at the time of the bankruptcy filing, suggesting that it was not insolvent when legal proceedings for bankruptcy protection began.

The revelation has sparked outrage within the cryptocurrency community, leading many to accuse Bankman-Fried and his team of spreading misleading information. Skepticism and distrust towards SBF persist, despite these new claims.

### Team Asserts FTX’s Financial Stability

In a statement dated October 31, the SBF team elaborated on their stance by sharing a document aimed at clarifying FTX’s financial movements. They argued that FTX was never actually bankrupt and claimed that $8 billion owed to customers remained within the exchange during the bankruptcy filing. They further stated that 98% of creditors have already received more than full repayment, between 120% and 144%, and that, three years after the exchange’s collapse in November 2022, the estate still possesses $8 billion despite settling substantial claims and legal fees.

The team attributes the crisis to a liquidity issue caused by an abrupt cash shortage. Approximately seven million customers had deposited nearly $21 billion, which they claim would have been resolved had it not been for the intervention of FTX’s external legal advisors.

### Asset Holdings of FTX Examined

As of the petition date, FTX’s holdings are reported to be $137 billion, which encompasses various investments and assets. These include $14.5 billion in equity of Anthropic, $7.8 billion from their holdings in Robinhood shares, $1.3 billion invested in Genesis Digital Assets, and $620 million connected to SpaceX via K5 Global.

In terms of cryptocurrency assets, the exchange holds 59 million SOL valued at $12.6 billion, 900 million SUI amounting to $3 billion, 206,000 BTC worth $2.4 billion, 226.7 million XRP totaling $620 million, 113,000 ETH valued at $510 million, alongside $1.75 billion in cash and $347 million in stablecoins.

### Community Reactions to FTX Financial Claims

Prominent voices within the crypto sector, such as the on-chain analyst ZachXBT, have criticized these assertions, pointing out that numerous customers suffered significant losses due to the valuation of assets at the time of the 2022 collapse. The assertion that investment gains were serendipitous at best casts doubt on the SBF team’s representations.

Another vocal critic, Adam Cochran, candidly expressed skepticism towards SBF’s narrative, referring to it as misinformation similar to previous occasions. The community remains vocal about their belief that SBF should remain imprisoned, and warns against any potential pardoning actions from political figures influenced by his circle.

The political aspect adds another layer of complexity. Figures allied with Bankman-Fried, such as certain lawyers involved in high-profile cases like the recent conviction of President Donald Trump, have fostered rumors of a possible pardon. Speculations escalated after President Trump issued a pardon to Binance founder Changpeng Zhao (CZ) this month, triggering debate on whether SBF would receive similar leniency.

### FTX Token’s Market Activity

Despite these revelations, the FTX Token (FTT) experienced a notable surge, climbing beyond 3% in recent hours to trade at approximately $0.82. Trading activities around the token increased by 33% within a 24-hour period. However, whether this market activity is linked to the unfolding bankruptcy narrative or broader crypto market trends remains uncertain.

The discourse surrounding FTX’s financial standing and management continues to evolve, as the investigation into past practices plays out and the crypto community awaits further legal determinations. As stakeholders process these developments, trust will be a decisive factor in FTX’s potential resurgence in the crypto sphere.