CZ Recalls FTX Collapse: SBF Casually Asked for Billions in Aid

FTX, once one of the world’s leading cryptocurrency exchanges, filed for Chapter 11 bankruptcy protection alongside Alameda Research on November 11, 2022. Prosecutors found that SBF had misappropriated billions of dollars in customer funds. A New York federal court sentenced him to 25 years in prison and ordered the forfeiture of more than $11 billion on March 28, 2024, leaving a central question: whether the ability to repay customers eventually means no fraud occurred at the time.

In a February 20, 2026, post on X outlining “10 major misconceptions,” SBF said FTX had faced only a liquidity crisis and that customers could recover 119% to 143% of their claims. In a June interview, he put recoveries at about 170% and said he hoped to receive a presidential pardon. The FTX Recovery Trust distributed $2.2 billion on March 31, but claims were converted into cash at depressed November 11, 2022, valuations and did not reflect Bitcoin’s subsequent gains. The U.S. Court of Appeals for the Second Circuit nevertheless upheld his conviction on June 12.