SBF Claims FTX Never Filed for Bankruptcy, Alleges Lawyers Submitted False Petition to Profit
FTX founder Sam Bankman-Fried (SBF) posted on X asserting that FTX never filed for bankruptcy. He alleges that after lawyers took control of the company, they submitted a false bankruptcy petition within four hours intending to exploit the bankruptcy process for profit. The post challenges the legitimacy of the legal proceedings and implies misconduct by the law firm or trustees handling FTX’s affairs. No further details about supporting evidence or responses from the law firm, court, or bankruptcy trustees were provided in the report. The claim could revive regulatory and market scrutiny around FTX’s restructuring and has potential implications for creditor recoveries, ongoing litigation, and counterparty confidence.
Bearish
Allegations from SBF that FTX never filed for bankruptcy and that lawyers submitted a false petition introduce legal uncertainty and undermine confidence in the restructuring process. Market participants generally react negatively to fresh claims of misconduct around insolvent exchanges because they raise doubts about creditor recoveries, the timeline for asset distributions, and the credibility of trustees and counterparties. In the short term, such news can trigger selling pressure on crypto assets tied to FTX creditors or assets believed to be involved in recoveries, and may increase volatility across major tokens as traders reprice risk. In the medium to long term, sustained legal disputes and loss of trust can slow resolution, prolong asset freezes, and deter institutional counterparties, which would be bearish for market liquidity and risk appetite. This mirrors past episodes where legal or governance controversies at major exchanges (e.g., Mt. Gox developments, FTX’s initial collapse) led to prolonged market weakness and higher volatility.