Sam Bankman-Fried Renews Claim That FTX Was Always Solvent
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Sam Bankman-Fried says new testimony shows FTX assets exceeded deposits despite liquidity gap.
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Former data chief Dan Chapsky claimed customers could have been repaid within months.
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SBF seeks retrial in Manhattan, alleging new evidence and prosecutorial pressure.
Sam Bankman-Fried renewed claims this week that FTX remained solvent during its November 2022 collapse, citing new sworn testimony. Posting through a proxy on X, the former CEO referenced a declaration from a senior former executive. The move comes as Bankman-Fried, now imprisoned, pursues a new trial in Manhattan federal court.
Sworn Declaration From Former FTX Data Chief
According to Sam Bankman-Fried, the most qualified person to assess FTX’s finances was Dan Chapsky. Chapsky served as head of data science at FTX and later worked with bankruptcy attorneys. Notably, those lawyers hired him to calculate whether the exchange was solvent.
In his sworn declaration, Chapsky stated that FTX International faced an $8 billion liquidity gap on November 11, 2022. However, he wrote that assets still exceeded customer deposits. Based on asset values at the time, he concluded the exchange remained solvent despite liquidity stress. He added that customers could have been repaid within months, not years, absent an omnibus bankruptcy.
Solvency Claims and Bankruptcy Findings
Bankman-Fried said Chapsky’s conclusions align with findings from the bankruptcy court’s independent examiner. He argued that the shutdown prevented faster customer recoveries. Meanwhile, he emphasized that liquidity shortfalls differ from insolvency under standard financial definitions.
However, the exchange entered bankruptcy proceedings shortly after withdrawals halted. The declaration focuses on asset coverage, not operational continuity. Chapsky framed his analysis around asset ownership and estimated recovery timelines.
New Trial Effort and Legal Challenges
Bankman-Fried is serving a 25-year sentence for fraud tied to FTX’s collapse. He recently filed a pro se motion seeking a new trial. The filing was submitted in Manhattan federal court and supported by his mother, Barbara Fried.
The motion argues that new witness evidence could weaken the prosecution’s case. It highlights the absence of testimony from former FTX executive Ryan Salame. Salame later faced federal convictions after separate proceedings.
Bankman-Fried also alleged prosecutorial misconduct, claiming witnesses faced pressure from the Department of Justice. He asked Judge Lewis Kaplan to recuse himself. However, appellate judges have questioned whether solvency was central to the original verdict.
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