Nearly three years after the dramatic collapse of FTX, Sam Bankman-Fried (SBF) has returned to the spotlight with a sweeping new claim that his fallen exchange was never truly insolvent. In a 10,000-word defence statement, the former billionaire insists FTX’s downfall was the result of panic, poor legal advice, and a short-term liquidity crunch, not fraud or mismanagement.

But as his appeal approaches, few within the crypto space are buying it.

SBF Claims FTX Was Solvent

In his 15-page filing, Bankman-Fried argues that at the time of FTX’s November 2022 bankruptcy, the exchange held $14.6 billion in assets against $8 billion in customer liabilities. According to him, the numbers prove FTX could have fully repaid all customers “had it been allowed to operate for a few more weeks.”

He detailed the alleged asset breakdown as follows:

• $5.5 billion in cash and liquid cryptocurrencies
  
• $3.7 billion in illiquid tokens
  
• $4.6 billion in venture investments
  
• $0.3 billion in Bahamian real estate holdings
  
• $0.1 billion in licensed subsidiaries, including LedgerX and FTX EU
  

SBF contends that the crisis stemmed from a “sudden shortage of cash” rather than insolvency, and that his legal advisers forced a Chapter 11 filing prematurely. “FTX could have remained solvent if not for legal overreach and panic,” he claimed, accusing his legal team of destroying billions in value through “needless bankruptcy proceedings.”

Crypto Community Reacts: “Nobody’s Buying It”

The reaction from the crypto world has been almost universally sceptical. Influencers, analysts, and former FTX users dismissed SBF’s defence as an attempt to rewrite history rather than accept responsibility.

Crypto investigator ZachXBT criticised the argument, stating on X (formerly Twitter):

“Creditors were paid based on 2022 bankruptcy valuations, not 2025 market prices. People lost millions when FTX collapsed, a bull market recovery doesn’t erase fraud.”

He added, “You’ve clearly learned nothing from prison; this is the same misinformation, just dressed up as a legal defence.”

Similarly, prominent trader Tyler Durden suggested SBF might be positioning himself as a “fall guy” for broader market failures, but most commentators dismissed the notion. The overwhelming sentiment remains that FTX’s solvency today is irrelevant to the legality of how customer funds were handled back then.

FTX’s Recovery Was Market Luck, Not Management

Much of FTX’s perceived asset recovery, critics argue, stems not from Bankman-Fried’s stewardship but from the massive rebound in crypto valuations since 2022.

At the time of FTX’s collapse, Bitcoin (BTC) traded below $20,000, while Solana (SOL) languished near $10. Fast forward to 2025, and BTC has surged above $100,000, with SOL climbing past $180, a sixfold increase.

This market resurgence inflated the valuation of the assets still controlled by FTX’s bankruptcy estate, allowing administrators to recover a higher percentage for creditors. As one analyst put it, “FTX got lucky, not smart. The bull market saved users, not SBF’s accounting.”

A PR Gamble Before the Appeal

Observers see the new defence not as a legal masterstroke but as a public relations campaign orchestrated by SBF’s family and defence team ahead of his appeal. Reports suggest his mother, Barbara Fried, has been actively working behind the scenes to reshape public opinion, portraying her son as a victim of misguided legal advice and market hysteria rather than deliberate deceit.

However, the broader industry remains unmoved. Even among those who once supported him, there’s little sympathy left. For most, the 10,000-word document reads less like an explanation and more like damage control, an attempt to soften his image before the courts deliver a final judgment.

As one former FTX investor put it bluntly:

“Even if the balance sheet looks solvent now, fraud is fraud. You don’t get to rebrand history because the market bailed you out.”

A Legacy That Can’t Be Rewritten

For all the spreadsheets and retroactive justifications, Sam Bankman-Fried’s reputation remains in ruins. His insistence that FTX was solvent may appeal to loyalists, but the legal and moral verdicts of the crypto community are already clear.

The exchange’s collapse marked one of the darkest chapters in crypto history, erasing billions in customer funds and eroding trust across the entire industry.

Now, with sentencing appeals pending and public patience exhausted, SBF’s sprawling “defence” seems unlikely to shift perceptions. To most observers, it’s simply one last attempt to reclaim a narrative long lost.

In the court of crypto opinion, Sam Bankman-Fried’s story is already written, and no amount of revision can balance that ledger.