Sam Bankman-Fried has revived his claim that FTX was not insolvent when it collapsed in November 2022. Posting through a proxy on X, the former CEO pointed to new sworn testimony from former FTX executive Dan Chapsky, arguing that the exchange’s assets still exceeded customer deposits even as it faced a severe liquidity shortfall.
The argument now sits at the center of Bankman-Fried’s push for a new trial in Manhattan federal court. He is currently serving a 25-year prison sentence tied to fraud convictions arising from the FTX collapse.
Former data science head described an $8 billion liquidity gap
According to Bankman-Fried, Chapsky was among the best-positioned former insiders to assess FTX’s finances. Chapsky previously served as head of data science at FTX and later worked with bankruptcy attorneys. Bankman-Fried said those lawyers hired him to calculate whether the exchange was solvent.
In his sworn declaration, Chapsky said FTX International faced an $8 billion liquidity gap on November 11, 2022. Even so, he wrote that the value of the company’s assets still exceeded customer deposits at that time. On that basis, he concluded the exchange remained solvent despite acute liquidity stress. He also stated that, without an omnibus bankruptcy process, customers could have been repaid within months rather than years.
SBF says the shutdown slowed customer recoveries
Bankman-Fried argued that Chapsky’s analysis matches findings from the bankruptcy court’s independent examiner. He said the shutdown of the exchange prevented faster repayments to customers. He also drew a distinction between a liquidity shortfall and insolvency, saying the two are not the same under standard financial definitions.
FTX, however, entered bankruptcy shortly after withdrawals were halted. Chapsky’s declaration addresses asset coverage, not whether the exchange could have continued normal operations. His analysis was framed around asset ownership and estimated recovery timelines.
Retrial motion also challenges witnesses and prosecutors
Beyond the solvency dispute, Bankman-Fried recently filed a pro se motion seeking a new trial in Manhattan federal court. The filing was backed by his mother, Barbara Fried. The motion says new witness evidence could weaken the prosecution’s case, and it points to the absence of testimony from former FTX executive Ryan Salame, who was later convicted in separate federal proceedings.
Bankman-Fried also alleged prosecutorial misconduct, claiming witnesses were pressured by the Department of Justice, and asked Judge Lewis Kaplan to recuse himself. The report noted that appellate judges have questioned whether FTX’s solvency was central to the original verdict.