FTX founder Sam Bankman-Fried labeled his bankruptcy filing unnecessary on Monday. He made this claim through posts on X. He stated that outside lawyers forced FTX to file for bankruptcy. This comes at a time when there are still many issues surrounding FTX’s bankruptcy.
On February 10, 2026 In his social media posts, which referred to court documents, the FTX CEO claimed that legal advisers, including law firm Sullivan & Cromwell, had advised on filing even though internal reviews had shown that FTX.US was solvent. The unverified social media claims are the latest controversy to surround a high-profile cryptocurrency bankruptcy case.
FTX.US Bankruptcy Faces Solvency Challenge
Mr. Bankman-Fried said he advised FTX.US executives that the Chapter 11 filing was premature because of internal technical checks that showed the firm’s wallets were not affected by the customer shortfall related to FTX International, and the firm had enough assets to continue operating and possibly sell as a going concern.
Bankman-Fried also said that the sale of the trading firm could have helped the preferred shareholders and creditors, stating that the rush to bankruptcy had closed off other avenues of recovery.
The decision to file for bankruptcy was taken by the legal counsel and not the management, according to Bankman-Fried. He claimed that the law firm Sullivan & Cromwell demanded the inclusion of the firm in the bankruptcy because they had the money to pay the lawyers’ retainer.
He noted that the company appointed its own representative to oversee the operations just before the filing. Sullivan & Cromwell representatives have not made any public comments on his latest social posts. The bankruptcy of the company is ongoing in the U.S. Bankruptcy Court as part of the restructuring.
FTX Legal Conflicts Spark Allegations
The ex-executive complained of a conflict of interest and high legal costs by the law firm, citing the over $200 million cash that LedgerX has to assist with bankruptcy costs.
Financial incentives could have also played a role in early restructuring decisions, according to Bankman-Fried. Bankman-Fried’s claims have not been decided in court, but they are based on his version of events.
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Ongoing Legal and Industry Impact
FTX is considered one of the major crypto failures that caught regulators’ attention (including the SEC) and led to discussions about crypto exchanges. Experts believe that another public debate over the bankruptcy could affect how creditors get paid in large crypto failures.
Further clarity on the matter might come to light as the case progresses and more filings or official responses come out.
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