Sam Bankman-Fried Calls FTX Collapse A Liquidity Crisis, Not Fraud
Posted On February 20, 2026
Sam Bankman-Fried is pushing back on what he calls widespread misconceptions about FTX’s collapse, arguing the exchange faced a liquidity crisis rather than insolvency or fraud.
‘FTX Was Not Insolvent’
Sam Bankman-Fried contended on X on Friday that FTX was solvent at the time of its bankruptcy filing and that customer funds did not permanently disappear.
He claimed the company is now repaying customers between 119% and 143% of their claims.
According to Bankman-Fried, FTX could have repaid customers in kind but was pushed into bankruptcy too quickly.
He alleges that legal fees totalling roughly $1 billion have drained the estate as lawyers dismantled the company and managed the repayment …
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