Sam Bankman-Fried was CEO of FTX when the exchange filed for bankruptcy in November 2022. reimburse its customers. Still, SBF insists that FTX US is solvent. For him, the accounts were not correctly carried out.
Why does Sam Bankman-Fried say FTX US is solvent?
Sullivan and Cromwell is one of the law firms responsible for handling FTX’s bankruptcy. According to the firm, the assets it managed to link to FTX are significantly lower than the total client balances. Sullivan and Cromwell compared FTX’s total holdings to its client database. The cabinet pushes even further the exchange and Sam Bankman-Fried. Indeed, he insists that FTX International and FTX US have large asset shortfalls.
If Sam Bankman-Fried continues to claim that the exchange he managed for years is still solvent, it’s probably to clear himself. Indeed, if convicted, he faces up to 115 years in prison. Recall that he pleaded not guilty to all counts. These include money laundering, conspiracy to commit wire fraud and securities fraud.
Would SBF be desperate?
The ex-CEO dragged before the courts seems to have only one strategy to get out of it, to deny everything. Indeed, speaking of Sullivan and Cromwell’s claims in a post on Substack, he said: ” These claims by S&C are false and contradicted by data later in the same document.“. He goes on to say: FTX US was and is solvent, likely with hundreds of millions of dollars more than client balances. » We learned from CryptoPotato that he was already saying the same thing in November at the time of the bankruptcy.
SBF knows, however, that the criminal case against him was made with the help of his closest collaborators. Caroline Ellison and Gary Wang, since it is about them, pleaded guilty to benefit from the leniency of the judge.
American justice estimates that, since 2019, Sam Bankman-Fried has embezzled billions of dollars in client funds. He uses it in particular for his personal use and to offer gifts to politicians. To avoid such abuses in the future, some drastic measures are needed.
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