Sam Bankman-Fried: "FTX Wasn't in a Position to Declare Bankruptcy... It Was Just a Liquidity Issue"

Sam Bankman-Fried, former CEO of FTX, claimed in a recent interview that the cryptocurrency exchange FTX was not in a position to declare bankruptcy.

In an interview with The New York Sun quoted by UBlockchain on the 21st (local time), he asserted that "FTX wasn't in a position to declare bankruptcy. It was a liquidity crisis, not insolvency, and we had sufficient assets to fully reimburse our customers at the time."

He further explained that "The essence of the situation was simply that this liquidity crisis created market panic, preventing us from quickly converting assets to cash."