Sam Bankman-Fried Blames Lawyers for FTX Collapse: A $100 Billion Scapegoat?
- Did Lawyers Really Destroy $100 Billion in FTX Value?
- FTX’s "Temporary Cash Flow Issue" vs. Reality
- Why the Crypto World Isn’t Buying It
- The Bigger Picture: Reputation Laundering?
- Q&A: Unpacking SBF’s Latest Claims
Sam Bankman-Fried (SBF), the disgraced founder of FTX, is back in the spotlight with a bold new narrative—he claims lawyers and bankruptcy administrators, not his own mismanagement, caused the exchange’s implosion. In a 15-page document posted on X, SBF insists FTX was solvent and could have repaid customers by late 2022. Critics call it a desperate rewrite of history ahead of potential appeals. Meanwhile, the crypto community rolls its eyes.
Did Lawyers Really Destroy $100 Billion in FTX Value?
Sam Bankman-Fried’s latest salvo, published October 30, 2025, is a masterclass in deflection. He argues that FTX’s collapse wasn’t due to fraud or incompetence but because external lawyers pushed unnecessary bankruptcy proceedings. According to SBF, FTX could’ve recovered from its liquidity crunch and repaid users by November 2022—if only those pesky attorneys hadn’t intervened.
His central claim? Sullivan & Cromwell (S&C) and bankruptcy CEO John J. RAY III "fire-sold" FTX assets like Solana, Anthropic, and Robinhood shares at massive discounts, vaporizing $120 billion in potential value. "That’s $120 billion that would’ve gone to stakeholders if they’d just done nothing," he laments. (Source:for asset price histories)
FTX’s "Temporary Cash Flow Issue" vs. Reality
SBF frames FTX’s November 2022 meltdown as a mere liquidity hiccup, insisting the exchange was negotiating $8 billion in emergency funding before lawyers "forced" bankruptcy. But court documents and testimony tell a different story—one where billions in customer funds vanished into Alameda Research’s black hole. (Fun fact: That $8 billion figure? Nowhere to be found in FTX’s actual balance sheets.)
His five key accusations against S&C:
- Pushed premature bankruptcy despite alternatives
- Replaced competent internal teams with outsiders
- Sold assets below market value
- Exaggerated insolvency to justify takeover
- Blocked a full customer repayment plan
Why the Crypto World Isn’t Buying It
Industry reactions range from skepticism to outright mockery. On X, users called SBF’s claims "delusional fanfiction." Crypto investigator ZachXBT noted creditors were repaid at 2022 bankruptcy prices—meaning they missed the subsequent crypto rally. "Imagine blaming lawyers because your Ponzi scheme collapsed," quipped one trader.
The BTCC research team observes: "SBF’s narrative contradicts every audit and whistleblower account. FTX’s insolvency wasn’t manufactured—it was quantified." (This article does not constitute investment advice.)
The Bigger Picture: Reputation Laundering?
Timing is everything. SBF’s post coincides with pending appeals and a PR push to rehabilitate his image. But with FTX users still nursing losses and his criminal conviction upheld, the court of public opinion seems decided. As one victim tweeted: "My ‘solvent’ exchange still owes me 3 BTC. Where’s that ‘$100 billion’ now, Sam?"
Q&A: Unpacking SBF’s Latest Claims
Did FTX actually have $100 billion in value?
Unlikely. SBF’s figure assumes assets would’ve appreciated under his continued control—a big "if" given FTX’s fraudulent accounting.
Why blame lawyers now?
Legal experts suggest this is groundwork for appeals, shifting blame from SBF’s actions to post-collapse management.
Could FTX have repaid customers without bankruptcy?
Bankruptcy filings showed an $8 billion hole. Even with hypothetical funding, restitution would’ve taken years.
