Sam Bankman-Fried declares FTX has money, blames 'liquidity panic'

In a recent interview while being held in prison, Sam Bankman-Fried (SBF) - the former head of the FTX exchange - shared his views on the collapse of the company, rejecting the concept of bankruptcy and instead calling it a 'Liquidity Crisis.'

FTX: Not Bankrupt but Facing Liquidity Crisis According to SBF, FTX always has enough assets to return the full amount of money to customers. However, the issue arises not from the company's financial ability but from the liquidity crisis - a condition that makes accessing and disbursing funds slow due to market panic. He emphasized that without this crisis, FTX could fully refund customers quickly. Bankruptcy Process and Criticism of Handling The liquidity crisis has led to a lengthy bankruptcy process, in which SBF did not hide his dissatisfaction. He criticized the bankruptcy process for delaying the return of funds to customers, while also condemning the handling by the bankruptcy trustee. Initially, the total asset value was estimated to be only about 1 billion USD, but this figure was later raised to 15 billion USD - a change that he believes does not reflect FTX's true financial condition. Legal and Political Pressure In addition to financial issues, SBF also pointed out the shortcomings in the process of handling its case. He believes that the legal system has been unjust when allowing the prosecution to assert that the entire investment fund has been lost, while not providing an opportunity for the defense to refute those arguments. In addition, SBF also revealed the political context surrounding the case. He mentioned that the prosecutor — Danielle Sassoon — and Judge Kaplan were both appointed by President Trump, arguing that the political conflict between the Trump and Biden administrations had a significant impact on the trial process. Lifestyle that holds firm despite the loss of property Despite experiencing a huge failure, SBF asserts that his way of life has not changed. He emphasizes that, even when losing a large portion of his wealth, he still maintains a commitment to effective charitable activities. A large part of his fortune has been dedicated to initiatives in the field of healthcare, animal protection, and pandemic prevention – evidence of his life philosophy and community-oriented goals. Conclusion Through this sharing, Sam Bankman-Fried wishes to make his point that FTX's collapse was not caused by the company's bankruptcy but rather by a liquidity crisis caused by market panic. At the same time, he expressed dissatisfaction with the bankruptcy process and the legal and political pressures that affected his trial. While these opinions were controversial, they opened up a new perspective on the case, requiring analysts and the public to reflect and reevaluate the financial and legal aspects of one of the great financial scandals of our time.