FTX Claims Insolvency Was Manufactured, Customers Could Have Withdrawn Funds
New allegations suggest FTX was not genuinely insolvent at the time of its collapse, and customers could have perhaps withdrawn their assets in full. A recently published article by DongZu DongTun, a prominent blockchain news outlet, claims the actions taken during the bankruptcy proceedings – including asset sales at significantly undervalued prices, exorbitant legal fees, and prioritizing government claims - were strategically designed to reinforce a narrative of complete financial ruin.
The report details several instances of assets sold far below estimated value: a Sui stake for under $100 million (valued at $2.9 billion), an Anthropic stake with a $900 million profit on a $14.3 billion valuation, Solana tokens sold for $3.3 billion (valued at $12.4 billion), and Robinhood stock for $600 million (valued at $7.6 billion). Furthermore, the bankruptcy team has incurred $948 million in advisor fees, with another $449 million earmarked for future work, and spent $17 billion on government claims before beginning repayment to customers and investors. The article posits these actions served to create a “self-fulfilling prophecy” of hopelessness.
These claims come as the third round of repayment distributions, totaling $1.6 billion, is set to launch on September 30th. However,questions remain regarding equitable treatment of all creditors,particularly those based in China,who allege discrimination in the recovery of approximately $380 million. the DongZu DongTun report suggests the current narrative surrounding FTXS collapse may be a intentional attempt to deflect responsibility, and the community awaits expert analysis to validate or refute these allegations. The article’s timing, published shortly before further repayments, raises the stakes and invites scrutiny of the bankruptcy proceedings.
