SBF says Sullivan & Cromwell contradicted itself with insolvency claims

Law company Sullivan & Cromwell opposed itself when it specified that shuttered crypto exchange FTX US is insolvent, former CEO Sam Bankman-Fried declared in a Jan. 17 post that was shared on Twitter.FTX United States is solvent,

as it always as been.https:// t.co/ XjcyYFsoU0 pic.twitter.com/kn9Wm9wxjl!.?.!— SBF(@SBF_FTX)January 18, 2023

The law practice was employed by FTX Group to deal with the insolvency proceedings of several of its subsidiaries, consisting of FTX International, Alameda Research and FTX

United States. However, Bankman-Fried has mentioned on numerous events that he believes FTX US is solvent and should not have actually declared insolvency. In a statement filed with the United States Bankruptcy Court for the District of Delaware on Jan. 17, FTX consultants Sullivan and Cromwell, Alvarez & Marsal, and Perella Weinberg Partners repeated their claim that FTX United States is not solvent, mentioning:”The properties identified since the Petition Date are considerably less than the aggregate third-party customer balances suggested by the electronic journal for FTX United States.” In his post, SBF rejected this claim and mentioned that FTX lawyers

have opposed themselves:”Later in the exact same report, S&C reveals that FTX United States has an extra$428m USD in savings account, on top of the$181m of tokens– for approximately$609m of total possessions […] therefore FTX US had at least $111m, and most likely around$400m, of excess cash on top of what was needed to match customer balances.”The former CEO concluded from this that, “FTX United States is solvent. Customers must be admitted to their funds.”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 scams by the U.S. Securities and Exchange Commission in connection with FTX’s insolvency. The SEC declared that he”orchestrated a years-long fraud to hide from FTX’s investors […] the undisclosed diversion of FTX customers ‘funds to Alameda Research LLC, his privately-held crypto hedge fund. “Bankman-Fried has pleaded innocent and is waiting for trial.After being released on bail, SBF started releasing blog posts on substack

start on Jan. 12, however numerous in the crypto community have been unimpressed with his works.