SBF, who is currently serving his sentence in prison, once again published a long article titled "FTX: Where Did The Money Go?" on his X account this morning with the help of a "friend". He stated: " Although FTX is facing a liquidity crisis, it has never actually been insolvent and originally had enough assets to fully repay all customers in kind by the end of 2022."
However, due to the involvement of external legal counsel and subsequent bankruptcy proceedings, clients were delayed in receiving compensation until 2025, and the compensation was in the form of "dollarization" rather than physical cryptocurrency. Meanwhile, equity investors also suffered huge losses.
The original link to SBF's article is here . Here's a quick summary of the key points from the activity forum:
SBF believes that if the lawyers had not taken over FTX, all clients would have received full compensation in kind in 2022, and equity holders would have also received significant value.
At the time of the liquidity crisis in November 2022, FTX and its affiliate Alameda had $25 billion in assets and $16 billion in FTX equity, while liabilities amounted to $13 billion, resulting in net assets of approximately $28 billion. Even at the height of the crisis, the company remained solvency.
FTX was actively seeking solutions at the time and had begun making payments to customers, expecting to resolve the liquidity crisis by the end of 2022.
