• An account related to SBF posted a 15-page doc claiming that FTX “has by no means been bankrupt.”
• The doc slams legal professionals and factors out that the present worth of crypto property is $136 billion.
• ZachXBT refuted this declare, mentioning that collectors had been paid at 2022 lows, inflicting large losses.

A social account tied to Sam Bankman Fried shared paperwork claiming that FTX was by no means bankrupt and that legal professionals’ pressured submitting derailed the short-term liquidity settlement. Whereas the publish revived longstanding claims that property and fairness exceeded debt on the finish of 2022, critics pointed to the chapter on November 11, 2022, and the truth that creditor claims had been set on the submitting date reasonably than at present’s increased crypto costs.

The battle has put numbers and timing on the middle of the restoration debate.

Associated: SBF’s household releases 64-page commentary on ‘liquidity disaster’ forward of attraction on November 4th

What the SBF doc claims

The 15-page article mentioned that FTX and Alameda had about $25 billion in property and $16 billion in inventory, however had $13 billion in debt on the time of the chapter, an incident that legal professionals described as exacerbating the liquidity crunch.

It added to the present portfolio’s hypothetical worth of practically $136 billion, citing shares equivalent to Anthropic and Robinhood as proof that collectors might have made a full restoration. This argument makes an attempt to reframe chapter as timing and shift accountability from operations to processes.

The doc argues that FTX’s collapse was not due to an enormous fraud scheme decided by a Manhattan jury in 2023, however to an absence of liquidity that would have been resolved inside weeks. The alternate claims it had roughly $25 billion in property and an extra $16 billion in fairness worth towards $13 billion in debt on the time of its chapter in late 2022. The paperwork say these numbers present that FTX is solvent and able to repaying its collectors in full.

The doc echoes Bankman Freed’s earlier statements in an interview from jail with political commentator Tucker Carlson in March, and his assertion that there have been “enough funds” to settle all buyer and investor claims. It additional alleges that FTX’s outdoors counsel prematurely pressured the corporate out of business and halted ongoing efforts to stabilize liquidity.

Asset worth claims and hypothetical portfolios

An in depth breakdown claims that if FTX and its buying and selling affiliate Alameda Analysis had retained the funding portfolio, the businesses would now maintain roughly $136 billion value of inventory. Among the many property listed are a $14.3 billion stake in synthetic intelligence firm Anthropic and a $7.6 billion stake in retail brokerage Robinhood.

Different investments referenced embody positions in XRP-focused fintech firm Ripple and Bitcoin mining firm Genesis Digital Belongings. Final month, FTX Restoration Belief filed a lawsuit towards Genesis Digital Belongings for $1.15 billion, alleging embezzlement on the route of Bankman Freed.

On-line dialogue across the chapter story

The publish sparked an instantaneous response from the crypto neighborhood, together with blockchain researcher ZachXBT, who identified that “collectors had been paid from the crypto worth on the time of FTX’s chapter, not the present worth,” leading to vital losses for customers holding property equivalent to Solana and Bitcoin. He added that at present’s enhance in valuations for illiquid investments is “only a coincidence.”

ZachXBT condemned this new narrative, writing, “SBF is solely attempting to weaponize the truth that all FTX property and investments have elevated in worth from PicoBottom’s November 2022 worth, regardless that they had been successfully unable to pay their customers throughout the chapter.”

In distinction, “Sam Bankman” freedThe account, named Fan Web page, responded that it might “successfully pay out customers within the occasion of chapter.” The paper claimed that the liquidity proposal arrived “10 minutes after SBF signed the doc authorizing Ray,” and that FTX’s new CEO John J. Ray III ignored each Bankman Freed’s request to withdraw the appliance on November 18, 2022, and the $4 billion liquidity facility from Tron.

Associated: SBF’s prison-born ‘GM’ sparks neighborhood outrage as FTX Belief information $1.15 billion lawsuit towards Genesis Digital