Law firm Sullivan & Cromwell contradicted itself when it stated that shuttered crypto exchange FTX US is insolvent, former CEO Sam Bankman-Fried claimed in a Jan. 17 blogs that have been posted on twitter.
We are creditworthy, as always.https://t.co/XjcyYFsoU0 pic.twitter.com/kn9Wm9wxjl
— SBF (@SBF_FTX) January 18, 2023
Https://t. co/XjcyYFsoU0 pic.twitter.com/kn9Wm9wxjl— SBF (@SBF_ETX) 18 Jan 2023. However, Bankman-Fried has stated on several occasions that he believes FTX US is solvent and should not have declared bankruptcy.
In a statement filed with the United States Bankruptcy Court for the District of Delaware on Jan. 17, Sullivan and Cromwell reiterated its claim that FTX US is not solvent, stating: In a statement to the U.S. Bankruptcy Court for the Delaware District dated Jan. 17, Sullivan and Cromwell reiterated their statement that the US FTX is not creditworthy, stating:
"The assets identified at the date of the petition are significantly lower than the overall third-party client balances suggested by the US FTX eBook."
In his position, SBF denied this allegation and said that the law firm contradicted each other:
More in the same report, S. He concluded that FTX US is creditworthy.
SBF resigned as CEO of the crypto exchange on Nov. 11, and John J. Ray III was appointed as the company’s replacement CEO. On Dec. 13, SBF was charged with fraud by the U.S. Securities and Exchange Commission in connection with FTX’s bankruptcy. The second alleged that he "orchestrated a fraud of several years in order to hide to the investors of ftx [...] the undisclosed diversion of FTX customers’ funds to Alameda Research LLC, his privately-held crypto hedge fund.” Bankman-Fried has pleaded not guilty and is awaiting trial.
After being released on bail, SBF began publishing blog posts on substack beginning on Jan. 12, but many in the crypto community have been unimpressed with his writings.