Renowned crypto attorney and U.S. Senate candidate John Deaton has intensified his opposition to any potential pardon for former FTX CEO Sam Bankman-Fried (SBF), dismissing recent efforts to portray the exchange as still solvent before filing for bankruptcy.
In the context of SBF circulating charts suggesting that FTX’s net asset value (NAV) could reach $78 billion by 2025, Deaton emphasized that court rulings and actual creditor losses are far more significant than hypothetical recovery scenarios.
John Deaton rejects FTX’s $78 billion valuation claim and opposes pardon
Deaton’s response came after Bankman-Fried attempted to re-enter the digital space. In a post titled “10 Myths About Me & FTX” on X, SBF denied allegations of insolvency and published a chart modeling FTX’s NAV over time.
This chart shows that if FTX had not initiated bankruptcy proceedings in November 2022, its NAV could have risen to $78 billion by February 2025, compared to $16.5 billion at the time of filing. These projections are partly based on modeled valuations of holdings, including tokens like SRM and FTT.
However, Deaton—widely known for defending the XRP community in the lawsuit between the U.S. Securities and Exchange Commission and Ripple—rejects the reinterpretation of data in a way that favors SBF. He describes the former billionaire as a “con artist, thief, and liar,” and states that FTX’s operations were fundamentally a coordinated family effort to convert small investors’ savings into political influence and global marketing campaigns.
Not stopping at the nickname “Sam Bankman Fraud,” Deaton also questions the so-called “two-tier justice system,” suggesting that SBF’s parents—both Stanford professors—have yet to face appropriate criminal consequences related to their alleged roles in the FTX ecosystem.
While SBF’s team continues to share valuation charts, many legal experts remain skeptical, noting that “modeled assets” often rely on illiquid tokens lacking depth in real markets.
As the 2026 political cycle heats up, Deaton’s firm stance against such claims may indicate that the pro-rule-of-law faction within the crypto industry is prepared to oppose any efforts to downplay the severity of the FTX fraud—regardless of current market conditions or hypothetical recovery scenarios.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
ZachXBT: Russian OTC Broker Allegedly Assists Ransomware Money Laundering Over $4.7 Million, Funds Bridged from BTC to Avalanche
On-chain detective ZachXBT disclosed that Russian OTC broker Aleksandr Khinkis has allegedly assisted in laundering $4.7 million in ransomware proceeds since July 2025, involving 796 Bitcoin. The suspicious funds were transferred cross-chain to Avalanche and deposited into Aave, with frequent activity in Southeast Asia and Australia. ZachXBT is calling on victims to report relevant addresses to improve freezing efficiency.
GateNews5h ago
Irish Police Crack First of 12 Bitcoin Wallets in $418M Drug Seizure
Ireland's Criminal Assets Bureau accessed a Bitcoin wallet containing 500 BTC valued at $34 million, part of a seizure from drug dealer Clifton Collins. Support from Europol's cybercrime unit was crucial in overcoming decryption challenges.
Decrypt6h ago
Husband accuses wife of stealing over 2,000 bitcoins! Judge: The plaintiff has a very high chance of winning.
The UK High Court is hearing a Bitcoin theft case in which the plaintiff alleges his estranged wife secretly stole 2,323 Bitcoin in 2023. In the case, the plaintiff used audio evidence to prove that the defendant and her sister planned to transfer the Bitcoin. The judge found a high probability of the plaintiff prevailing and ordered asset freezing while dismissing some claims, recommending expedited trial proceedings.
区块客6h ago
500 Bitcoin Transferred, Europol Cracks Old Wallet
A portion of Bitcoin held by Clifton Collins has attracted attention again, with 500 bitcoins successfully transferred to a new address, sparking speculation about how the private keys were obtained. This transfer involves multiple wallets, demonstrates enhanced tracking capabilities by law enforcement, and serves as a warning to Bitcoin holders to strengthen their private key management.
GateNews7h ago
Kalshi Launches "Report Insider Trading" Feature as Prediction Market Regulation Intensifies
Kalshi Launches "Report Insider Trading" Button to Strengthen Compliance and Regulation, Allowing Users to Report Potential Violations. Meanwhile, the platform restricts political candidates and athletes from participating in related markets, aimed at preventing conflicts of interest. This initiative comes amid regulatory pressure from lawmakers and reflects the platform's commitment to transparency and integrity in prediction markets.
GateNews7h ago
Drug Trafficker's 500 Bitcoin Seized "See the Light of Day"! Behind It Lies a Criminal Asset Recovery Operation
Irish police successfully cracked the Bitcoin wallet of a convicted drug dealer, seizing 500 BTC valued at over $35.6 million. The assets belonged to drug trafficker Clifton Collins and had been inaccessible for years due to lost private keys. With assistance from Europol, police regained control of the wallet, with hopes of recovering more Bitcoin in the future.
区块客7h ago
