Sam Bankman-Fried Claims FTX Was Insolvent When It Crashed

In a conversation with reporters, Bankman-Fried expressed dissatisfaction with Biden's cryptocurrency policy, emphasizing that the Republican Party, in his opinion, is pursuing a more reasonable policy. According to The Block, he previously financially supported both parties, but now sympathizes more with the Republicans. He also noted dissatisfaction with Judge Lewis Kaplan, who presided over his trial and the trial against Donald Trump in the E. Jean Carroll case.

According to Bankman-Fried, FTX had enough funds to meet its customer obligations when it filed for bankruptcy. He claims that the exchange only appeared to be insolvent, and instead of paying out immediately, the managers dragged out the process for almost two and a half years.

"There were enough assets to cover all customer claims in November 2022. However, instead, the management company declared hopeless insolvency and called the situation a "dumpster fire," he said. Bankman-Fried also insists that the accusations of stealing billions of customer funds are not true.

The interview with the former FTX chief coincided with the fact that on February 18, the exchange's managers began distributing about $800 million among creditors with claims of less than $50,000.

Despite FTX's bankruptcy and the lengthy process of asset recovery, the exchange had significant financial reserves as of mid-February. The strong growth of the crypto market and the rise in the price of tech stocks played into the hands of the managers, increasing the value of the assets of FTX and Alameda. This allowed the creation of a fund to compensate affected clients who had been waiting for payments for more than two years. 

Bankman-Fried's statements that the exchange was able to pay off its clients in a timely manner may be partially supported by FTX's current financial situation. However, the question remains whether the exchange could have avoided bankruptcy if the managers had acted differently.