SBF reiterates claim that FTX could have repaid users in months - Coinfea

Sam Bankman-Fried (SBF) has reiterated claims that FTX was solvent at the time of its collapse. In his latest post, SBF cited a sworn declaration from the exchange’s former head of data science. This comes as SBF continues to pursue a new trial from prison.

ContentsSBF sticks to FTX solvency claimsNew evidence and self-representation on the cardsIn a post on X, SBF reminded the public about Dan Chapsky’s memo. He mentioned that Chapsky was more than qualified to assess the company’s financial position. However, Chapsky was hired by bankruptcy lawyers to calculate whether the exchange was solvent.

SBF sticks to FTX solvency claims

In the post, SBF mentioned that Chapsky’s declaration mentions that FTX’s international arm faced an $8 billion liquidity shortfall on Nov. 11, 2022. Despite this, the platform remained solvent because its assets exceeded customer deposits. He added his opinion on the nature and value of the assets in FTX’s possession on November 11.

The declaration also added that international customers could have been repaid within months, not years, if the exchange had not been forced into omnibus bankruptcy proceedings and abruptly shut down. SBF added that this view was validated by findings from the bankruptcy court’s independent examiner. Earlier, SBF had claimed that fresh evidence shows that Biden’s DOJ threatened several witnesses into silence or led them to change their testimony.

He asked for his conviction to be thrown out, adding that Judge Lewis Kaplan should recuse himself from this motion. He stated that companies were forced offshore under Biden, while under the Trump administration, they’re welcome back in America. He pointed out that under Democrats, companies that needed licenses were refused. Meanwhile, under the new administration, that has changed, and the DOJ is no longer indicting entire industries.

New evidence and self-representation on the cards

SBF is presently serving a 25-year prison sentence for fraud tied to FTX’s collapse, and now he is seeking a new trial. In this case, he also filed a motion in Manhattan federal court Pro Se. This suggests that he is representing himself. The request for a new trial was filed by his mother, Barbara Fried. She had argued that new witness testimony could undermine the prosecution’s case.

The filing highlighted the absence of testimony from former FTX executive Ryan Salame. He fought his own legal battle and was later convicted on federal charges. Salame had claimed he reached an agreement to cooperate with prosecutors that would shield his wife. But she was later charged with allegedly taking illegal campaign contributions in her congressional campaign.

SBF’s new bid argues that new evidence and witness accounts could challenge the narrative presented at trial. However, appellate judges have previously shown skepticism about that line of argument. The November hearing saw members of the appeals panel question whether solvency was central to the case. FTX’s fallen token FTT posted some gains amid the fresh claims. FTT is trading at $0.373, up by more than 13%.