Sentenced to 25 years in prison, FTX founder Sam Bankman-Fried (SBF) stated in an interview with The New York Sun that, at the time of the exchange’s collapse, it remained solvent but suffered from a liquidity shortage. He also claimed that the law firm Sullivan & Cromwell mishandled the bankruptcy proceedings.
“There were enough assets at the time to repay all customers. However, the liquidity crisis triggered panic, making it impossible to quickly cash out funds,” SBF explained.
This was Bankman-Fried’s first interview since his imprisonment, coinciding with FTX’s ongoing compensation payouts to its users. The company asserts that affected customers will receive full reimbursement, but the amounts are calculated based on cryptocurrency prices from 2022, sparking dissatisfaction among victims.
Although investments made by Alameda Research and FTX—such as their stake in the startup Anthropic AI—have turned a profit, customers “need their money now, not years later.” SBF maintains that he has evidence proving he did not misappropriate billions in customer funds and that the necessary cash was available.
He also reiterated that “borrowing and lending” were integral parts of FTX’s margin trading platform and should not be seen as proof of fraud. According to him, the exchange only “appeared” insolvent.
Bankman-Fried has appealed to former U.S. President Donald Trump for a pardon, claiming that his criminal case was politically motivated by the administration of Joe Biden.
After returning to the White House, Trump previously pardoned Silk Road darknet market founder Ross Ulbricht, sparking anticipation among those convicted of white-collar crimes. On February 20, Ulbricht published a post calling for the release of Bitcoin.com founder Roger Ver, who was arrested in Spain last year on U.S. tax fraud charges.
Bankman-Fried was one of the largest donors to Biden’s 2020 campaign. However, in the interview, he emphasized that he had supported both parties, secretly funding Republicans. SBF expressed disappointment with the Democratic Party and stated that Republicans, including Trump, take a more constructive stance on many issues.
In November 2023, a jury found SBF guilty on all seven counts against him. In March 2024, the U.S. District Court for the Southern District of New York sentenced him to 25 years in prison. He has since filed an appeal.
