Convicted FTX Founder Sam Bankman-Fried Addresses 10 Common Misconceptions

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about 14 hours ago

FTX Insolvency Claims and Repayment

Sam Bankman-Fried denies FTX’s insolvency, asserting the exchange is repaying customers 119-143% of claims. He disputes prosecutors’ claims that $8 billion in customer funds vanished, arguing solvency was maintained. Bankman-Fried contrasts statements to jurors with bankruptcy court representations, emphasizing liquidity was sufficient to cover assets outside the lending program.

Corporate Culture and Personal Spending

Bankman-Fried rejects allegations of a lavish corporate culture, denying claims of “polycule orgies” or excessive partying. He notes he rented only 10% of a penthouse for $50,000 and funded personal spending and donations from his earnings. He insists his lifestyle was modest compared to his income.

Liquidity and Backdoor Accusations

He disputes the narrative that FTX filed for bankruptcy due to liquidity shortages, citing financing offers within three days. Bankman-Fried denies creating a secret “backdoor” to transfer funds to Alameda, stating account features had legitimate purposes. He argues margin trading’s structure made full liquidity unrealistic.

Trial Fairness and Pardon Hopes

Bankman-Fried claims his trial was unfair, alleging DOJ and bankruptcy debtors controlled the narrative and limited his defense. He criticizes Judge Kaplan’s rulings, including a gag order and bail revocation tied to his First Amendment rights. Pardon hopes from Trump have faded as he seeks a New York retrial.