FTX to Compensate at 2022 Coin Prices, SBF's Parents' Defense of Son Rejected by Creditors

The parents of FTX founder Sam Bankman-Fried (SBF), Barbara Fried and Joseph Bankman, gave an interview to CNN over the weekend, questioning the core premise behind his conviction and claiming that FTX customer funds were never actually lost. FTX creditor representative Sunil Kavuri immediately refuted this, stating that all repayments are calculated based on the cryptocurrency prices at the time of the 2022 bankruptcy filing.

The Core Argument of SBF’s Parents: “Funds Have Always Been There”

Joseph Bankman stated in the interview that “funds have always been sufficient,” claiming that FTX and Alameda Research are “highly profitable companies with billions of dollars in additional assets.” Barbara Fried added, “Everyone received full compensation, with interest rates between 18% and 43%.”

The data they cited is not without basis. As of the fourth round of repayments, FTX has recovered approximately $10 billion, with a 100% recovery rate across multiple categories of U.S. customers, and one category even reaching 120%. However, behind these figures lies a deliberately overlooked key premise—the basis for cryptocurrency valuation.

Creditor’s Rebuttal: Calculating “Full Compensation” Based on 2022 Cryptocurrency Prices Is Misleading

Three Major Disputes Over the “Full Compensation” Claim

“Crypto prices frozen at 2022”: All distributions are denominated in USD, fixed at the asset prices at the time of bankruptcy application in November 2022. At that time, Bitcoin was approximately $16,800; since then, Bitcoin soared to over $126,000 in fall 2025, and is currently around $69,000.

Creditors receive USD, not assets: A FTX customer holding 1 Bitcoin receives the USD equivalent of their claim as of 2022, plus interest, not the Bitcoin itself or its current market value. The estate ultimately returned about 119% of the claimed amount, but the original claim was only a small fraction of the current market value.

Regulatory contradictions in Alameda’s borrowing argument: Joseph Bankman claimed Alameda’s borrowing from FTX was “routine,” but accepting this logic would legitimize mixing customer assets with proprietary trading firm assets—something that is explicitly prohibited by recent regulations in Hong Kong, the European Union, and proposed U.S. legislation.

Political Pardon Framework: Trump Has Rejected It, Polymarket Odds Only 12%

Barbara Fried further claimed that the indictment is “primarily politically motivated,” alleging that the Biden administration “decided to destroy cryptocurrencies,” and that if SBF were released, he would “make a huge contribution to the economy.” These remarks are widely interpreted as a call for Trump to pardon him.

However, the path to a pardon is currently effectively closed. Trump explicitly stated in a January interview with The New York Times that he is not considering pardoning SBF—even though he has pardoned Silk Road founder Ross Ulbricht and former Binance CEO Zhao Changpeng (CZ). According to Polymarket’s prediction market, the probability of a pardon happening is currently only about 12%. SBF’s appeal is still under review, and his motion for a new trial has been opposed by prosecutors, who dismissed allegations of political bias. SBF is currently sentenced to 25 years in prison.

Frequently Asked Questions

Q: What is the basis for SBF’s parents claiming “full customer compensation”?
Joseph Bankman and Barbara Fried cite data from FTX’s restitution trust, indicating that some U.S. customer categories have a recovery rate of 100% to 120%, and claim Alameda’s loans are normal business practices. However, these calculations are based on cryptocurrency prices at the time of the 2022 bankruptcy filing, a premise that has sparked strong controversy among creditors.

Q: Why do FTX creditors disagree with the “full compensation” claim?
All repayments are calculated based on USD prices from November 2022. For example, Bitcoin was about $16,800 then and around $69,000 now. Creditors holding Bitcoin only received the USD value of their claims as of 2022, not the original assets or their current worth. The actual loss is the potential appreciation of the assets, not the nominal account balance.

Q: How likely is it that Trump will pardon SBF?
Currently, the likelihood is very low. Trump explicitly stated in January 2026 that he is not considering pardoning SBF. Polymarket’s prediction market shows only about a 12% chance of a pardon. Although Trump has pardoned Ross Ulbricht and Zhao Changpeng (CZ), SBF’s case is not currently included in his pardon considerations.