SBF’s parents defend FTX payouts, dispute losses

SBF’s parents claim FTX customers are fully reimbursed, with payouts based on 2022 values. Some creditors dispute this, noting the difference from current crypto prices.

Sam Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, have publicly defended their son, the founder of the collapsed FTX exchange, in recent televised interviews. They assert his innocence and claim that no customer funds were ultimately lost. According to them, FTX customers have been or will be fully reimbursed, with the FTX Recovery Trust preparing a $2.2 billion payout, bringing total recoveries to around $10 billion. They emphasized that all distributions are calculated based on the U.S. dollar value of assets at the time of FTX’s bankruptcy in November 2022, when Bitcoin was valued at about $16,800. This means customers receive the 2022 dollar equivalent plus interest, not the current, much higher value of their crypto holdings. The parents argue that FTX was a profitable company with surplus assets and that the repayment process disproves claims of permanent loss. However, some creditors and customers dispute being made whole, citing the gap between 2022 asset values and today’s market prices.