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 a 25-year sentence at the Metropolitan Detention Center in Brooklyn, FTX founder Sam Bankman-Fried (SBF) broke his silence on February 20, posting a series 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 forceful 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 119% to 143% compensation, demonstrating the company’s assets are sufficient to cover its debts. SBF argues that the 2023 trial was extremely unfair, emphasizing that the so-called “loss of $8 billion” is purely fictional, and that the company still maintained a strong balance sheet at the time of collapse. He further questions the legitimacy of the bankruptcy process, citing creditor advocate Mr. Purple, describing FTX’s bankruptcy as one of the “darkest” cases he has seen. According to reports, legal and professional fees for the case have already exceeded $1 billion. SBF accuses that lawyers initially 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 team handling the restructuring.

Controversy over repayment rate; the valuation gap behind the 119% figure Although SBF repeatedly emphasizes that customers will receive over 100% compensation, legal experts and creditors generally doubt this claim, viewing it as a narrative manipulation. Under U.S. bankruptcy law, creditor claims must be valued as of the filing date, November 11, 2022. At that time, the crypto market was crashing due to FTX’s collapse, with prices at historic lows. 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 liquidating multiple properties. According to the approved payout plan, 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 distribution process. SBF attempts to use the seemingly high repayment ratio to clear his fraud charges, but for creditors who have lost the opportunity for asset appreciation tied to cryptocurrencies, this “full repayment” appears 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 have been previously linked by media to the late Jeffrey Epstein’s activities. SBF states he never attends parties or vacations, and even in the luxury mansion owned by FTX, he only paid $50,000 in rent for using 10% of the space. He emphasizes that all personal expenses and donations come from his legitimate income, not misappropriated customer funds.

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

On a technical and operational level, SBF firmly denies establishing any secret “backdoors” in Alameda Research to bypass risk controls. He argues that FTX’s margin mechanism inherently includes collateral pools and lending functions, and that Alameda’s account activities serve legitimate business purposes, not violating exchange terms.

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, rather than premeditated criminal acts. Regarding testimonies from former executives like Caroline Ellison, Gary Wang, and Nishad Singh, SBF claims they provided false statements in exchange for reduced sentences. Ultimately, Ellison received only 2 years, Wang was granted probation, and Singh avoided prison, 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, he claims that Judge Lewis Kaplan displayed obvious bias and prevented the defense from presenting key evidence, including proof of FTX’s solvency and professional legal advice. He even requests a different judge to review the case, arguing that Kaplan’s rulings misled the jury. This legal battle also extends 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 CEO 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 the controversial CEO. As $FTT tokens fluctuate wildly due to SBF’s actions, this intersection of legal, political, and financial battles in prison is unlikely to settle soon.

Trump’s stance: “No pardon”! SBF faces 25 years, parents’ efforts to save him fall short