FTX Was Not Bancrupt, Legal professionals Misplaced $66B

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Doc Says Legal professionals Went Behind SBF’s Again FTX Making $3M A Day When Shuttered, Doc Says Associated Articles:

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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 into chapter 11 value traders $66 billion.

The doc, which says it was written by Bankman-Fried and his staff, 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 exterior 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 into chapter 11 so they may oversee its property, a transfer it says derailed restoration efforts. It added that prospects might have been repaid “in full, in sort,” with $111 billion left for traders if the alternate had continued working.

“The attorneys then rapidly launched a marketing campaign responsible Bankman-Fried for the chapter they prompted,” the doc stated. “FTX was by no means bankrupt, even when its attorneys positioned it into chapter 11.”

[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 staff alleged that Sullivan & Cromwell teamed up with Ryne Miller, who was the overall counsel of FTX and a former companion at Sullivan & Cromwell, in addition to FTX US Derivatives CEO Zach Dexter, to “wrest management of FTX.”

One in all Sullivan & Cromwell’s attorneys, John J. Ray III, then positioned FTX and Alameda “into an omnibus Delaware chapter,” in line 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 stated.

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 shopper of the legislation agency, the doc added.

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

The doc claims that when Sullivan & Cromwell’s legal professional shut down FTX, the alternate was making $3 million per day and $1 billion per 12 months.

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

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

That call, the staff says, accounts for “roughly $66 billion of misplaced worth for traders below right now’s market circumstances.”

Bankman-Good friend and the staff additionally famous that the alternate held $7 billion price of FTX’s native FTT token, which they calculated can be price an estimated $22 billion right now.

FTX Was Not Bancrupt, Legal professionals Misplaced B

FTT worth (Supply: CoinMarketCap)

Sullivan & Cromwell bought FTX’s holdings in Sui for slightly below $100 million, a stake that right now is price $2.9 billion, the staff stated. FTX’s funding in Anthropic was bought for a $0.9 billion revenue and is price $14.3 billion now, it added.

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