Sam Bankman-Fried, the former head of the collapsed cryptocurrency exchange FTX, has used social media from a US prison to deny that the company was ever bankrupt, directly contradicting court rulings and regulatory findings.
Mr Bankman-Fried is serving a 25-year federal prison sentence after being convicted of fraud and conspiracy over the misuse of customer funds at FTX. In a post published on X on 10 February, his account stated that “FTX was never bankrupt” and accused lawyers of filing a “bogus” Chapter 11 bankruptcy shortly after taking control of the company.
US prison rules do not allow inmates unrestricted access to social media. Any posts made in Mr Bankman-Fried’s name are therefore believed to have been relayed through intermediaries, such as lawyers or family members.
His claims conflict with findings presented during his criminal trial and in bankruptcy proceedings. Prosecutors said more than $8bn in customer funds were misappropriated, leaving FTX unable to meet withdrawal demands when confidence in the exchange collapsed in late 2022.
Court records and regulatory complaints described FTX as deeply insolvent once losses at its sister firm, Alameda Research, were uncovered. Judges have also said that later recoveries, helped by rising crypto prices, do not change the company’s financial position at the time of its collapse or the nature of the fraud.
Mr Bankman-Fried’s social media activity has previously drawn attention in crypto markets. Past posts from his account have coincided with sharp, short-lived price moves in the now-defunct FTX token, as traders speculated on the meaning of his comments.
Despite his conviction, references to Mr Bankman-Fried continue to attract interest in the crypto sector. Analysts say the reaction to his latest remarks highlights the market’s ongoing sensitivity to high-profile figures, even as legal proceedings surrounding the FTX collapse move into the appeal stage.
