The post Did FTX Lose $138 Billion Because of Its Legal Team? appeared on BitcoinEthereumNews.com.

Disgraced FTX founder Sam Bankman-Fried (SBF) has claimed in a new report that his bankrupt cryptocurrency empire was never insolvent. He alleged that bankruptcy lawyers, not fraud, are to blame for the collapse that shook global crypto markets in 2022. The report drew sharp responses from blockchain investigators quickly. Crypto sleuth ZachXBT accused SBF of misleading people again and trying to shift blame. Sponsored Sponsored Behind The FTX Collapse The report, titled “FTX: Where Did The Money Go?,” by Bankman-Fried and his team, was posted on X (formerly Twitter). In the report, he outlined how $20 billion from seven million FTX customers turned into $8 billion in debt during the November 2022 collapse. “For a couple of years, customers got nothing back. Where did those billions go? The answer is they never left. FTX was never insolvent. There have always been enough assets to repay all customers—in full, in kind—both in November 2022, and today,” he wrote. Bankman-Fried stressed that the exchange allegedly had around $15 billion in assets at the time. He cites internal filings from FTX’s 2023 presentation to creditors, which listed assets that included crypto holdings, venture investments, and real estate. The report noted that, after a two-year delay, the estate revealed that all customers would be repaid at 119% to 143% of the original amount. SBF added that about 98% of creditors have already received 120%, and that after paying out $8 billion in claims and $1 billion in legal fees, the estate still has $8 billion left. He presents this outcome as proof that FTX always had enough assets to make customers whole. However, the report also acknowledged ongoing criticism that repayments are being made in US dollar equivalents based on November 2022 prices, not in-kind crypto. That means customers who held Bitcoin or Ethereum…

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Filed under: News - @ October 31, 2025 7:28 am