FTX Was Not Bancrupt, Legal professionals Misplaced $66B

A doc posted on Sam Bankman-Fried’s X account claims the defunct FTX crypto alternate was by no means bancrupt and that its attorneys’ choice to put it out of business value buyers $66 billion.

The doc, which says it was written by Bankman-Fried and his group, argues that the alternate confronted solely a brief liquidity crunch that was “on monitor to be resolved by the tip of the month” earlier than outdoors counsel intervened. It accuses Sullivan & Cromwell and former FTX executives of coordinating to grab management of the corporate.

The doc says that attorneys had been “closely incentivized” to push FTX out of business so they may oversee its belongings, a transfer it says derailed restoration efforts. It added that prospects might have been repaid “in full, in sort,” with $111 billion left for buyers if the alternate had continued working.

“The attorneys then rapidly launched a marketing campaign in charge Bankman-Fried for the chapter they prompted,” the doc mentioned. “FTX was by no means bankrupt, even when its attorneys positioned it out of business.”

[SBF says:]

That is the place the cash went. https://t.co/HVRwEw5Z1k https://t.co/5DrA13L5YE pic.twitter.com/O6q77DvmTn

— SBF (@SBF_FTX) October 31, 2025

Doc Says Legal professionals Went Behind SBF’s Again

Bankman-Fried and his group alleged that Sullivan & Cromwell teamed up with Ryne Miller, who was the final counsel of FTX and a former accomplice at Sullivan & Cromwell, in addition to FTX US Derivatives CEO Zach Dexter, to “wrest management of FTX.” 

Certainly one of Sullivan & Cromwell’s attorneys, John J. Ray III, then positioned FTX and Alameda “into an omnibus Delaware chapter,” in accordance with the doc. 

“As soon as FTX turned a Debtors’ property that they managed, the attorneys might pay themselves, at their very own discretion, out of FTX’s billions of {dollars},” they mentioned. 

After taking management of FTX, Sullivan & Cromwell “initiated the prosecution in opposition to Sam Bankman-Fried, going behind his again,” even whereas he was nonetheless a consumer of the legislation agency, the doc added. 

FTX Making $3M A Day When Shuttered, Doc Says

The doc claims that when Sullivan & Cromwell’s lawyer shut down FTX, the alternate was making $3 million per day and $1 billion per yr.

In the course of the liquidity disaster on the time, Bankman-Fried and his group mentioned that FTX had additionally discovered offers representing $6-8 billion value of liquidity that was “backed by its fairness on quick discover.” 

Regardless of that, the attorneys nonetheless deemed FTX a “nugatory ‘dumpster hearth’” and shut it down instantly, the doc says. 

That call, the group says, accounts for “roughly $66 billion of misplaced worth for buyers underneath at the moment’s market situations.” 

Bankman-Buddy and the group additionally famous that the alternate held $7 billion value of FTX’s native FTT token, which they calculated can be value an estimated $22 billion at the moment. 

FTT value (Supply: CoinMarketCap)

Sullivan & Cromwell bought FTX’s holdings in Sui for just below $100 million, a stake that at the moment is value $2.9 billion, the group mentioned. FTX’s funding in Anthropic was bought for a $0.9 billion revenue and is value $14.3 billion now, it added.

The exterior authorized counsel bought stakes in Solana and Robinhood, which might now be value a number of billions of {dollars} every, the doc added.

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