Legal expert and cryptocurrency attorney John Deaton has firmly rejected recent claims made by former FTX CEO Sam Bankman-Fried regarding the exchange”s potential solvency. Bankman-Fried presented a model suggesting that FTX could achieve a net asset value of $78 billion by early 2025, a claim that has sparked renewed debate over the circumstances surrounding the exchange”s collapse.
The discussion reignited when Bankman-Fried shared a chart that he claimed illustrated a possible recovery scenario, contrasting FTX”s then-net asset value of $16.5 billion in November 2022 with his optimistic projections. This chart relied heavily on modeled values of cryptocurrencies such as SRM and FTT, which encountered significant declines during the exchange”s crisis.
In response, Deaton has stated that discussions about clemency for Bankman-Fried are unwarranted, emphasizing that projected values do not alter the court”s findings regarding the losses suffered by creditors. He highlighted that the trial”s verdict remains the cornerstone for evaluating the former CEO”s actions and the subsequent fallout from FTX”s bankruptcy.
Legal analysts have noted that the assets Bankman-Fried referenced are not reflective of actual liquidity, especially in crisis situations. The modeled values he used in his projections do not account for the harsh trading conditions that marked FTX”s final days. When customers attempted to withdraw their funds in November 2022, the liquidity issues became painfully apparent.
Bankman-Fried”s recent assertions come as part of a broader initiative titled “10 Myths About Me and FTX,” where he seeks to challenge the narrative that the exchange was insolvent at the time of its collapse. He argues that had bankruptcy proceedings not commenced, asset prices might have rebounded, enabling the exchange to surpass the projected $78 billion mark.
Deaton”s remarks have gained traction as the political landscape shifts with the upcoming 2026 election season, generating discussions about accountability among those connected to FTX. He pointed out the uneven legal scrutiny faced by individuals involved in the exchange, raising questions about the overall responsibility within the corporate structure prior to bankruptcy.
The renewed claims from Bankman-Fried have also reignited interest among political observers, especially as his prior conviction continues to shape public discourse. His social media activity has increased following the initiation of his post-trial appeals, suggesting a strategic effort to reshape his narrative.
As the cryptocurrency sector reflects on past failures, the FTX debacle remains a critical case study in understanding the implications of rapid growth and the risks involved. Creditors are still anxiously awaiting clarity on the status of asset recoveries, making the outcomes of this ongoing discussion even more significant.
