Sam Bankman-Fried Claims Innocence Amidst FTX Controversy
Sam Bankman-Fried, the controversial founder of the collapsed FTX exchange, stands by his innocence, alleging political bias in his prosecution. In a recent interview with The New York Sun, he voiced his dissatisfaction with how his case was handled and insinuated that his legal issues were a result of his evolving political views.
FTX’s Liquidity Challenges
- Bankman-Fried, despite being sentenced to 25 years for orchestrating a major financial fraud, maintains that FTX was never insolvent. He claims it faced a liquidity crisis, not a total collapse.
- Before its downfall in November 2022, FTX reportedly had a net positive value of $10 billion and $20 billion in equity.
- Alameda Research started liquidating assets to cover liabilities, but rapid withdrawals overwhelmed their cash generation capabilities.
Allegations Against Sullivan & Cromwell
Bankman-Fried accused law firm Sullivan & Cromwell of mishandling FTX’s restructuring process. He believes the firm’s actions hindered efforts to reimburse affected customers.
Political Vendetta
- The disgraced billionaire suggests that his legal troubles were politically motivated. He claims that individuals associated with the Democratic Party received lenient treatment for cooperating with authorities.
- Bankman-Fried’s support for President Biden diminished due to the administration’s stringent stance on digital asset regulations.
Similarities to Trump’s Situation
Bankman-Fried drew parallels between his case and President Trump’s legal battles, citing politicization within the Department of Justice. Both cases involved US District Judge Lewis Kaplan, who presided over their respective trials.
With Trump’s potential return to power, Bankman-Fried’s remarks hint at a strategic alignment with the former president, potentially seeking clemency through a pardon.
