FTX Founder Sam Bankman-Fried Debunks ’10 Myths’ from His Cozy Prison Cell!

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It is with a certain degree of amusement and incredulity that we find our esteemed Mr. Sam Bankman-Fried, presently residing in the rather unglamorous confines of a prison, engaging in a spirited discourse via social media. He has taken it upon himself to elucidate what he dubs “ten myths” that have emerged in the wake of the unfortunate collapse of his once-thriving crypto exchange, FTX, and the subsequent legal repercussions that have befallen him.

The former chief executive, evidently undeterred by his circumstances, has boldly entered the fray to contest not only the assertions of the prosecutors but also the integrity of the bankruptcy process, the often sensationalist media coverage, and even the conduct of his own trial – a veritable trifecta of audacity!

Sam Bankman-Fried Disputes Allegations of Insolvency

Mr. Bankman-Fried commenced his defense by vehemently rejecting the notion that FTX was insolvent, notwithstanding the rather alarming claim that $8 billion of customer funds had mysteriously disappeared into an abyss. He endeavored to draw a distinction between the statements made by prosecutors to jurors and those made by bankruptcy debtors before the court, asserting that his claims of solvency were, in fact, entirely legitimate and that he had not lost billions of customer money – oh, what a tangled web we weave!

According to his revised narrative, FTX remains as robust as ever, now repaying its loyal clientele a most generous sum between 119% and 143% of their initial claims. One cannot help but marvel at such burgeoning generosity amid financial turmoil!

In a particularly humorous turn of events, he addressed the salacious rumors regarding a lavish corporate culture, specifically the allegations of “polycule orgies.” With the utmost seriousness, Mr. Bankman-Fried flatly denied any such indulgences, claiming instead that he did not partake in festivities or sojourns to exotic locales. Indeed, while FTX may have possessed a penthouse, he humbly rented a mere 10% of it for six months at the princely sum of $50,000. Such frugality is truly commendable!

On the Rumored ‘Backdoor’ for Alameda

In discussing the precipitating events that led to FTX’s bankruptcy, our intrepid protagonist confronted the prevailing narrative that he filed for bankruptcy due to an inability to satisfy surging withdrawal demands. On the contrary, he contends that offers were readily available to cover any liquidity shortfall and stabilize the platform, yet lawyers, in their infinite wisdom, proceeded with the bankruptcy filing posthaste.

He further elaborated on the structure of the exchange’s trading platform, Alameda Research, suggesting it was unrealistic to expect full liquidity at all times. Margin trading, he explained with the fervor of a scholar, involves customers – including Alameda Research itself – opting into a shared collateral pool for lending and borrowing. He avowed that most assets on the exchange were part of this lending program and that sufficient liquidity existed to cover assets beyond it. How delightfully convoluted!

Another notable accusation he dismissed was that he had crafted a secret “backdoor” within FTX’s systems to pilfer funds for Alameda. Mr. Bankman-Fried assured us that such mechanisms did not exist; rather, the account features in question had entirely legitimate purposes and were not intended to facilitate undue borrowing – a commendable stance, if somewhat hard to digest.

Pardon Hopes Dim

A significant portion of his discourse was devoted to lamenting the perceived unfairness of his trial. He boldly asserted that once the Department of Justice, under the previous administration, and the bankruptcy debtors took control of FTX, they effectively commandeered the narrative, curtailing access to documents and witnesses alike. One must wonder if he harbors aspirations of a theatrical courtroom drama!

Moreover, Mr. Bankman-Fried accused Judge Lewis Kaplan of imposing restrictions upon his ability to mount a robust defense, including a gag order, the revocation of his bail preceding the trial, and the exclusion of evidence related to FTX’s solvency. It seems our beleaguered hero feels quite constrained in his attempts at self-advocacy.

As he continues to pursue the prospect of a new trial in New York, speculation surrounding a potential presidential pardon from none other than President Donald Trump has begun to wane. Alas, the anticipation of a similar reprieve offered to former Binance CEO Changpeng Zhao appears to be fading faster than a summer’s day.

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2026-02-21 09:52