FTX CEO Disputes Shortfall Claims, But Critics Skeptical of Defense

-Sam Bankman-Fried has recently disputed FTX US ’shortfall‘ claims from Sullivan & Cromwell, the current restructuring administrators.
-Bankman-Fried claims the presentation was „extremely misleading“ and that FTX US is solvent and has always been.
-Critics have been skeptical of Bankman-Fried’s defense, specifically his Excel spreadsheet.

Sam Bankman-Fried, the former CEO of FTX, recently took to Twitter to dispute claims of a „shortfall“ by Sullivan & Cromwell, the current restructuring administrators. Following the update from the FTX debtors, who reported the discovery of $5.5 billion during an investigation, Bankman-Fried posted a blog on his Substack newsletter. In the blog, he stated that the presentation was „extremely misleading“ and that FTX US is solvent and „always has been.“

Bankman-Fried went on to dispute the claim of a „shortfall“ in the presentation and argued that FTX US had roughly $609 million of assets backing customer balances of $199 million. He maintained that FTX US was solvent when it was turned over to S&C and is likely still solvent.

However, critics on social media were skeptical of Bankman-Fried’s defense, specifically his Excel spreadsheet. Despite his claims, the FTX co-founder was mocked for his attempt to provide evidence of FTX US‘ solvency. It remains to be seen how this dispute will be resolved, but Bankman-Fried’s claims have certainly raised some eyebrows.