September 26, 2023

FTX CEO SBF Disputes Claims of Insolvency, Defends with Excel Spreadsheet

• Former FTX CEO Sam Bankman-Fried (SBF) has responded to a press release and 20-page presentation document issued by FTX debtors and current restructuring administrators.
• SBF disputes the assertion in the presentation that FTX US has a „shortfall“ and maintains that FTX US is not insolvent.
• Critics on social media have mocked SBF and criticized his Excel spreadsheet defense.

Following an update from FTX debtors about the $5.5 billion discovered by administrators during an investigation, former FTX CEO Sam Bankman-Fried (SBF) took to Twitter to share a blog post from his Substack newsletter. The press release reported that investigators found $5.5 billion in liquid assets. In response, SBF contested the claims of litigation firm Sullivan & Cromwell (S&C) and claimed that FTX US is solvent and has „always been.“

In SBF’s blog post, he noted discrepancies between S&C’s report and his own Excel spreadsheet. He argued that the presentation published by S&C is „extremely misleading“ and that FTX US has a total of $609 million in assets, which is enough to back the $199 million in customer balances. He concluded that FTX US was solvent when it was turned over to S&C and is likely still solvent today.

However, SBF’s claims have not been received well by the public. Several people on social media have mocked the FTX co-founder and specifically criticized his Excel spreadsheet defense. Many remain skeptical of his claims and doubt the solvency of FTX US.

While SBF has done his best to provide evidence and clarity on the situation, only time can tell how it all plays out. For now, the public will have to wait and see whether the claims of SBF and S&C prove to be true.