SBF faced heavy criticism for trying to erase the stain of FTX

The founder of FTX is serving a 25-year prison sentence, Sam Bankman-Fried (SBF), once again joining the debate surrounding the exchange's bankruptcy after responding to a mocking post from a creditor, accusing court-appointed CEO John J. Ray III of intentionally holding a “fully solvent” platform in bankruptcy to generate record fees and devalue assets.

The creditor believes that billions of USD worth of equity and venture investments have been sold at rock-bottom prices, assets have been mismanaged, recoveries have been mishandled, and subsidiaries have been forced into bankruptcy without the approval of the board of directors. Account X of SBF responds:

“I do not fully agree with every point – but yes, fundamentally this is what happened. I am not saying that the payment capability of FTX or the mismanagement of the stakeholders is the reason I am innocent ( even though that is part of the story!). But the stakeholders are still holding back the funds.”

No regrets, no responsibility

This comment immediately sparked a fierce reaction. On-chain detective ZachXBT demanded clarification on the $40 million transfer to a Chinese agency that he believes SBF has concealed.

Meanwhile, venture capitalist Adam Cochran stated that SBF shows no remorse for his role in the collapse of FTX. According to Cochran, SBF's attempts to rewrite the narrative are precisely why he deserves to be severely punished and should not be allowed to rewrite history.

The incident occurred just a few days after a new defeat in court for SBF. The judges of the Second Circuit Court of Appeals in New York appeared unconvinced by his appeal arguments. In Tuesday's hearing, SBF's lawyer, Alexandra Shapiro, argued that his sentence should be overturned because the first trial had “fundamental discrepancies,” but the three judges continuously rebutted and questioned whether SBF had a strong enough basis to overturn the jury's verdict in a case involving billions of dollars in losses. Judge Barrington Parker told Shapiro:

“Through the records, there is very clear evidence of wrongdoing. Does she really believe that if her client were presented with the role of the lawyers in preparing these documents, the not guilty verdict would change?”

The story from the prison

The online debate erupted after this former billionaire's X account was unexpectedly reactivated last month, posting a 14-page document asserting that FTX “had never lost its ability to pay.” SBF claimed that outside lawyers and political forces had sabotaged a liquidity crisis that could have been resolved.

The document claims that the bankrupt fund misrepresented the balance sheet of FTX, and the value of the currently locked portfolio will exceed 100 billion USD. However, experts have dismissed this argument, stating that the claims are similar to what the jury heard in 2023. The backlash from the community has yet to show any signs of subsiding.

Thạch Sanh