Sam Bankman-Fried has once again taken to social media from prison, laying out what he describes as “10 myths” surrounding the collapse of crypto exchange FTX and his subsequent conviction.
The former chief executive used the statement to challenge prosecutors, the bankruptcy process, media coverage, and even the conduct of his trial.
Sam Bankman-Fried Denies FTX Insolvency
Bankman-Fried began by disputing the allegation that FTX was insolvent and that $8 billion in customer funds vanished. He contrasted statements made by prosecutors to jurors with representations made by bankruptcy debtors to the court, and that his claim of solvency was false and that he had lost billions in customer money.
Media reports, he said, reinforced the message that the funds were gone. In his version of events, however, FTX was solvent and is now repaying customers between 119% and 143% of their claims.
Bankman-Fried also rejected persistent rumors about a lavish corporate culture. Addressing allegations of “polycule orgies,” Bankman-Fried flatly denied that such conduct took place.
He insisted he did not party or take vacations, noting that while FTX owned a penthouse, he personally rented only 10% of it for six months for $50,000. He maintained that his personal spending and political donations were funded from his earnings and were less than those earnings.
Secret ‘Backdoor’ For Alameda
On the events leading to FTX’s bankruptcy, Bankman-Fried pushed back against the narrative that he filed because he could not meet surging withdrawal demands. According to him, there were offers to cover the liquidity shortfall and stabilize the platform.
He claimed that within three days, financing proposals were on the table and withdrawals had begun to resume, but that lawyers nonetheless proceeded with the bankruptcy filing.
The former FTX CEO also addressed the structure of the exchange’s trading platform, Alameda Research, saying it was unrealistic to expect a margin exchange to be fully liquid at all times.
Margin trading, he explained, involves customers — including Alameda Research — opting into lending and borrowing through a shared collateral pool. He asserted that most assets on the exchange were part of this lending program and that FTX had sufficient liquidity to cover assets outside of it.
Another key accusation he disputed was that he created a secret “backdoor” in FTX’s systems to siphon funds to Alameda. Bankman-Fried denied that such a mechanism existed, saying the account features in question had legitimate purposes and were not used to allow Alameda to borrow more from customers than it had lent.
Pardon Hopes Fade
A significant portion of his statement focused on his trial. Bankman-Fried claimed he did not receive a fair hearing, arguing that once the Department of Justice (DOJ) under former President Joe Biden and the bankruptcy debtors took control of FTX, they controlled the narrative, access to documents, and the pool of witnesses.
Bankman-Fried also accused Judge Lewis Kaplan of restricting his ability to defend himself, including imposing a gag order, revoking his bail before trial, excluding evidence related to FTX’s solvency, and advice of counsel.
Regarding the revocation of his bail, Bankman-Fried maintained that it stemmed from his exercise of First Amendment rights and attempts to assist the bankruptcy debtors, rather than from witness intimidation.
The statement comes as Bankman-Fried continues to pursue a new trial in New York. Speculation that he might receive a presidential pardon from President Donald Trump — similar to the one granted to former Binance CEO Changpeng Zhao — has largely faded.
Featured image from OpenArt, chart from TradingView.com
