The recent bankruptcy plan announced by FTX has raised eyebrows, with customers set to receive $1.18 for every dollar's worth of crypto assets they held on the exchange at the time of its collapse in November 2022, plus interest. This rare outcome has sparked a question: was Sam Bankman-Fried, the founder of FTX, right all along?

Bankman-Fried had claimed that FTX was illiquid but solvent, a statement echoed by Bloomberg's Matt Levine in his "Money Stuff" newsletter. However, this claim has been met with skepticism, given the circumstances leading up to FTX's bankruptcy.

In the days before the bankruptcy, Bankman-Fried was desperately trying to raise funds to shore up a massive hole in the company's balance sheet. He reportedly approached various investors, including Silicon Valley VCs and Saudi money men, but was ultimately unsuccessful.

Despite his efforts, FTX's finances were in disarray, with a reported $8 billion hole in its balance sheet. Bankman-Fried's infamous tweet, "FTX is fine. Assets are fine," was seen as a desperate attempt to reassure customers as withdrawals began to pick up pace.

In reality, FTX's solvency was far from fine. The exchange's collapse led to a massive loss of customer funds, and Bankman-Fried's subsequent sentencing to 25 years in prison for financial fraud was a stark reminder of the consequences of his actions.

In conclusion, while FTX's bankruptcy plan may have yielded a surprisingly favorable outcome for customers, it is essential to remember that Sam Bankman-Fried's claims of solvency were likely a desperate attempt to save face rather than a genuine reflection of the exchange's financial health.