FTX Drama: $2.5B Fee Scandal, $130B Asset Lost. Who’s Responsible?

Was FTX Really Bankrupt? Inside SBF Appeal: Claim of $130B Asset Lost

The request by Sam Bankman-Fried has sparked new discussions about the way FTX managed its bankruptcy, as he partially supported the criticism of the current CEO, John J. Ray II, on grounds of mismanagement, poor asset sales, and fund withholding from creditors.

What Happened in FTX vs What Actually Happened in FTX?

• At the time of the bankruptcy filing of FTX in November 2022, most people assumed that the exchange had an enormous balance sheet hole, and it owed billions of dollars to its customers. 

• John J. Ray III, who replaced SBF as CEO, claimed the company was deeply insolvent and mismanaged.

• However, new revelations and creditor statements suggest that the exchange estate may have been solvent all along. 

• A Google Drive document shared during SBF’s appeal reportedly shows that: On the bankruptcy filing date, the crypto exchange held $15 billion in assets against $8 billion in liabilities (meaning assets exceeded debts). This contradicts the initial argument that FTX was bankrupt.

• Critics now say the estate mismanaged valuable holdings, selling assets such as Robinhood shares, Solana (SOL), and SUI tokens at low prices, and possibly destroying up to $130 billion in assets.

What’s the Truth?

The truth lies somewhere between competing narratives. FTX’s official filings project 119%–143% recovery for creditors, implying that all users will be repaid—and possibly more. However, a lot of investors and analysts wonder how the process of executing the deal resulted in billions of fees and huge discounts on large assets.

Arush, a creditor on X, releases a satirical video accusing Ray of his management practices, including more than $2.5 billion in professional fees and dubious asset sales, including the sale of Anthropic shares worth $16 billion for $1.8 billion. 

Although it is written humorously, it is an expression of real anger among the creditors who feel that the wealth was squandered in bad choices instead of being reclaimed successfully.

Source:  Official SBF X

Views of SBF: "FTX was Never Insolvent"

SBF admitted he did not agree with every point made in the viral speech but said, “Yeah, this is basically what happened.” He emphasized that his comments weren’t meant to prove his innocence but to highlight alleged mismanagement during the bankruptcy.

He also highlighted the unpaid creditor funds, especially those of Chinese investors, citing the current case of "Mr. Ji." SBF claims that such pending cases should be looked into more closely, since the Ray administration has not been acting in an open and just manner.

Views and Decisions of CEO John Ray About FTX 

John J. Ray III has justified his actions as being necessary to salvage money and put the estate back on its feet. In the satirical video, which takes his statement to the extreme of exaggeration, he agrees that the huge fees and bonuses are there, but explains them as a reward for an extraordinary effort.

During the leadership of Ray, the exchange experienced a complicated reorganization with hundreds of court filings, asset recoveries, and settlements. 

However, critics accuse him of illegally including exchanges of EU and Japan in the bankruptcy, despite their solvency, and using estate funds for litigation against former employees.

Current Situation of FTX

By November 2025, the recovery process of the exchange will still be in progress. Creditors are demanding full repayment, but there are still controversies on the amount of value lost in discounted sales and legal fees. Reports suggest that total bankruptcy costs could exceed $2.5 billion, making it the most expensive bankruptcy case since Lehman Brothers.

What’s Ahead

The Exchange appeal case could reshape public perception of the collapse. When the solvency is recognized on the date of filing the petition, then one might wonder why the bankruptcy was filed in the first place- and who actually benefited.

Conclusion

The scandal is still unraveling, and it combines satire and serious charges. As long as creditors wait to recover their money, the issue of insolvency, mismanagement, and accountability will most likely inform the final chapter of the exchange