- Sam Bankman-Fried and his team continue to defend themselves.
- SBF’s X account published a lengthy document on Thursday claiming the exchange was not actually insolvent.
- FTT has decoupled somewhat from the broader decline, rising about 2%.
An X account currently controlled by a friend of Sam Bankman-Fried stirred the cryptocurrency market with a post asserting that the company was not insolvent.
The 15-page document claims FTX faced a liquidity crunch that could have been resolved by the end of the month before outside counsel took control. The filing states:
FTX was never bankrupt, even if its lawyers declared it so.
[SBF says:]
This is where the money went. https://t.co/HVRwEw5Z1k https://t.co/5DrA13L5YE pic.twitter.com/O6q77DvmTn
— SBF (@SBF_FTX) October 31, 2025
According to the filing, the disgraced founder and his team compiled the document to emphasize that, despite court findings and allegations of fraud and mishandling of billions in customer funds, the exchange itself was not insolvent.
They argue that FTX experienced a sudden cash shortfall that created a liquidity squeeze rather than outright insolvency.
Meanwhile, the exchange’s native token, which has lacked clear utility since the collapse, turned bullish amid the developments.
FTT gained more than 2% on the daily chart, trading around $0.8473.
Trading volume rose more than 25%, suggesting heightened investor interest.
For context, the global cryptocurrency market cap remained largely flat over the past 24 hours, edging up 0.08% to about $3.7 trillion.
FTX Claims It Had Sufficient Funds During the Collapse
The document contends that the exchange and sister firm Alameda held roughly $25 billion in assets and $16 billion in equity value against about $13 billion in liabilities at the time of the 2022 downturn.
That would imply net assets of approximately $28 billion. The filing adds:
During the crisis, the value of assets and (roughly) equity were temporarily impaired, but even at the peak of the crisis these companies remained solvent—if one ignores equity entirely.
SBF and his team claim that if lawyers had not sold investments, their holdings would have been worth roughly $136 billion.
This figure would include a $760 million stake in Robinhood, a $1.43 billion investment in AI startup Anthropic, and other assets.
Community Reaction
Cryptocurrency enthusiasts and online investigators have largely dismissed SBF’s assertions.
Some viewed the filing as a desperate bid for clemency, comparing it to similar public relations moves by other high-profile figures in the industry.
Others questioned why withdrawals were halted if FTX truly had enough funds to pay creditors.
DeFi enthusiast and X user Hanzo referenced past exchange stress tests following large-scale incidents, noting:
Many centralized exchanges have been stress-tested after significant chaos; they all end up here.
FTT Price Outlook
In response to the news, FTT rose more than 2%, trading near $0.8473 as volumes spiked, highlighting renewed short-term enthusiasm.
However, the token’s recovery may be fragile. Ongoing market weakness and skeptical community responses to the team’s claims weigh on the digital asset.