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
Litecoin Undergoes Deep Chain Reorganization After MWEB Privacy Layer Exploit
Gate News message, April 26 — Litecoin experienced a deep chain reorganization (reorg) on Saturday after attackers exploited a zero-day vulnerability in its MimbleWimble Extension Block (MWEB) privacy layer, the Litecoin Foundation announced. The reorg spanned blocks 3,095,930 to 3,095,943 and
GateNews2m ago
Tennessee Bans Crypto ATMs Statewide, Becomes Second U.S. State After Indiana
Gate News message, April 26 — Tennessee has become the second U.S. state to impose a statewide ban on cryptocurrency ATMs. Gov. Bill Lee signed House Bill 2505 into law on April 13 after it passed both chambers unanimously. The law, officially codified on April 24, will take effect July 1 and
GateNews46m ago
DOJ Drops Criminal Probe into Powell, Clearing Path for Crypto-Friendly Warsh as Fed Chair
Gate News message, April 26 — The U.S. Department of Justice has closed its criminal investigation into Federal Reserve Chair Jerome Powell, removing a key obstacle to Senate confirmation of incoming Fed chair Kevin Warsh. U.S. Attorney for the District of Columbia Jeanine Pirro announced the
GateNews2h ago
U.S. Sanctions Iran-Linked Crypto Wallets as Tether Freezes $344 Million USDT
Gate News message, April 26 — U.S. Treasury Secretary Scott Bessent announced on Friday that the federal government is sanctioning multiple wallets linked to Iran as part of efforts to increase economic pressure on the country amid an ongoing ceasefire. The move came a day after Tether froze $344 mi
GateNews2h ago
U.S. DOJ Drops Criminal Probe Into Fed Chair Powell, Clearing Path for Crypto-Friendly Kevin Warsh Confirmation
Gate News message, April 26 — The U.S. Department of Justice has dropped its criminal investigation into Federal Reserve Chair Jerome Powell on Friday (April 25), clearing the way for the Senate to confirm incoming central bank chair Kevin Warsh. U.S. Attorney for the District of Columbia Jeanine
GateNews8h ago
Litecoin Suffers Deep Chain Reorganization After MWEB Zero-Day Exploit, Erasing Three Hours of History
Gate News message, April 26 — Litecoin experienced a deep chain reorganization (reorg) on Saturday after attackers exploited a zero-day vulnerability in its MimbleWimble Extension Block (MWEB) privacy layer, according to the Litecoin Foundation. The bug allowed mining nodes running older software to
GateNews8h ago
