Unwilling to accept 25 years of heavy sentencing! SBF responds from prison with "Top 10 Misconceptions": FTX was never insolvent

Breaking his silence after a 25-year sentence, SBF challenges fraud allegations through social media Currently serving 25 years at the Brooklyn Metropolitan Detention Center, FTX founder Sam Bankman-Fried (SBF) broke his silence on February 20, posting a series of messages titled “Top 10 Misunderstandings About Me and FTX” on social platform X.

Image source: X/@SBF_FTX | FTX founder Sam Bankman-Fried posts a series titled “Top 10 Misunderstandings About Me and FTX”

This marks SBF’s most aggressive public rebuttal since being convicted of seven counts of fraud and conspiracy in November 2023. In his posts, he vigorously refutes the core narrative that led to his imprisonment, claiming FTX was never truly insolvent, and pointing out that customers are currently receiving between 119% and 143% of their claims, demonstrating the company’s assets are sufficient to cover its debts. SBF believes the 2023 trial was highly unfair and emphasizes that the so-called “loss of $8 billion” is purely fictional, asserting the company still maintained a strong balance sheet at the time of collapse.

SBF further questions the legitimacy of the bankruptcy process, citing creditor advocate Mr. Purple, describing FTX’s bankruptcy as the “darkest” case he has seen. According to statistics, legal and professional service fees for the case have already exceeded $1 billion. SBF accuses that lawyers filed for Chapter 11 bankruptcy protection without his consent, at a time when the company was facing only a short-term liquidity crisis, not a total collapse. He claims that within days of the run on the bank, he received external funding offers sufficient to cover the shortfall and maintain withdrawals, but these solutions were ultimately blocked by the restructuring team.

Disputed repayment ratio and valuation gaps behind the 119% figure Although SBF repeatedly emphasizes that customers will receive over 100% compensation, legal experts and creditors generally remain skeptical, viewing this as a manipulation of figures. Under U.S. bankruptcy law, creditor claims must be valued as of the date of bankruptcy filing on November 11, 2022. At that time, the crypto market was crashing due to FTX’s collapse, with prices at very low levels. For example, if a customer held one Bitcoin ($BTC) on FTX, under the current payout plan they might receive about $17,000 in cash. While this is 119% of the November 2022 valuation, compared to Bitcoin’s market price surpassing $100,000 in 2026, the customer has effectively suffered potential losses exceeding $80,000. CEO John Ray III, overseeing FTX’s restructuring, previously confirmed that the team has recovered approximately $14.7 billion to $16.5 billion in assets, including a 13.56% stake in AI company Anthropic and proceeds from real estate liquidations. According to approved repayment plans, about 98% of small creditors (claims under $50,000) are expected to receive payments within 60 days after the plan takes effect in September 2025. However, large creditors’ payout timelines remain uncertain, and issues related to IRS tax claims and potential asset recovery lawsuits continue to be variables in the repayment process. SBF attempts to use the high repayment percentage as a shield against fraud charges, but for creditors who have lost the opportunity for asset appreciation, this “full repayment” seems unconvincing.

Denial of scandals and secret backdoors, criticizing judicial unfairness Beyond financial allegations, SBF also takes this opportunity to clarify long-standing rumors about his private life. He explicitly denies accusations of “polycules” or “orgies,” which media have previously linked to the late Jeffrey Epstein. SBF states he has never attended parties or vacations, and even in the luxury homes owned by FTX, he only paid $50,000 in rent for 10% of the space. He emphasizes that all personal expenses and donations come from legitimate income, not misappropriated customer funds.

Image source: X/@SBF_FTX | SBF firmly denies allegations of “polycules” or “orgies”

On the technical and operational front, SBF strongly denies establishing any secret “backdoors” for Alameda Research to bypass risk controls. He argues that FTX’s margin mechanism inherently includes collateral pools and lending functions, and Alameda’s account activities had legitimate operational purposes, not violating exchange terms of service.

Image source: X/@SBF_FTX | SBF firmly denies creating any secret “backdoors” for Alameda Research

He attributes the 2022 collapse to risk management failures and liquidity crises, not premeditated criminal acts. Regarding former executives who testified against him, including Caroline Ellison, Gary Wang, and Nishad Singh, SBF claims they provided false testimony in exchange for reduced sentences. Ultimately, Ellison received a 2-year sentence, Wang was granted probation, and Singh was acquitted, deepening SBF’s doubts about the fairness of the trial.

Personal motion for retrial, alleging political interference In early February 2026, SBF, through his mother Barbara Fried (a former Stanford Law professor), submitted a 35-page pro se motion to the Manhattan federal court, formally requesting a new trial. In the motion, SBF argues that Judge Lewis Kaplan displayed obvious bias and prevented the defense from presenting key evidence, including proof of FTX’s initial solvency and professional advice from lawyers. He even requests a different judge to review the case, claiming Kaplan’s rulings misled the jury. This legal battle also spilled into the political arena. SBF accuses the Biden administration of political persecution, claiming that as a major Democratic donor turned Republican, he was targeted. He alleges federal prosecutors deliberately concealed evidence favorable to him and threatened his former executive Ryan Salame’s pregnant fiancée to force Salame to plead guilty and avoid testifying. Despite SBF’s efforts to seek political relief and hope for a presidential pardon from Trump’s administration, Trump has made it clear he has no intention of releasing this controversial CEO. As the $FTT token fluctuates wildly due to SBF’s actions, this intersection of legal, political, and financial battles in prison is unlikely to settle soon.

Trump states “No pardon”! SBF faces 25 years in prison, parents’ efforts to save him fall apart