From his cell at the Metropolitan Detention Center in Brooklyn, convicted FTX founder Sam Bankman-Fried has launched a public defense, publishing a list of "10 Myths" to challenge the narrative surrounding the exchange's collapse and his 25-year sentence. In a series of social media posts, SBF categorically denied that FTX was ever insolvent, claiming customers are now being repaid between 119% and 143% of their claims based on November 2022 cryptocurrency valuations.
However, this repayment figure is heavily disputed. Analysts note the calculation uses asset prices from the time of the bankruptcy filing, meaning a customer who held one Bitcoin is receiving approximately $17,000, missing out on the asset's subsequent appreciation. Bankman-Fried also rejected the prosecution's claim that $8 billion in customer funds vanished, arguing that external financing offers existed to cover the liquidity shortfall and that lawyers, led by restructuring chief John Ray III, pushed for bankruptcy to generate millions in fees.
Beyond finances, SBF addressed salacious rumors, flatly denying allegations of "polycule orgies" and comparisons of his social circle to that of Jeffrey Epstein. He stated he "never partied or took vacation," and while FTX owned a penthouse, he personally rented only 10% of it for six months at a cost of $50,000.
On the mechanics of the collapse, Bankman-Fried disputed the existence of a secret "backdoor" in FTX's code to siphon funds to sister trading firm Alameda Research. He argued the features in question had legitimate purposes related to the platform's margin trading and shared collateral pool. He also claimed his 2023 trial was unfair, accusing the Department of Justice (DOJ) under the Biden administration and the bankruptcy team of controlling the narrative and evidence. He specifically criticized Judge Lewis Kaplan for imposing a gag order, revoking his bail, and excluding evidence related to FTX's solvency.
The statement comes as Bankman-Fried continues to pursue a new trial, while speculation of a potential presidential pardon from Donald Trump—similar to the one granted to former Binance CEO Changpeng Zhao—has largely faded. His public rebuttal has generated renewed discussion and volatility around the FTT token.
