In the latest development of the bankruptcy case involving the cryptocurrency exchange FTX, the controversy over the assets seized after the conviction of founder SBF is intensifying. According to The Block, three parties have now filed claims for these assets, including the estate of FTX’s debtor, a class of creditors, and an offshore entity founded by SBF called Emergent.
Reportedly, FTX led by John Ray III filed claims for six categories of assets last Friday, which were previously confiscated by the government from SBF. These assets include bank funds, two private planes, political donations, and proceeds from the sale of Robinhood stocks, with a total value of up to $10 billion. FTX emphasized in its claim application that these assets never belonged to SBF personally and were entirely derived from his criminal activities.
Additionally, Emergent, an offshore entity founded by SBF, and its liquidator have also filed claims, asserting that despite SBF owning 90% of Emergent, the Robinhood stocks and funds never belonged to him personally. Emergent has filed for bankruptcy in order to litigate these claims.
Meanwhile, the largest creditor group led by lawyer Sunil Kavuri at FTX has filed a class action lawsuit in the Southern District of Florida, claiming that these assets should be returned to FTX’s clients rather than handed over to the bankruptcy estate, as they stem from SBF’s fraudulent actions towards clients.
FTX stated in its application documents that despite opposing views, obtaining approval from the bankruptcy court for its claims is in the best interest of all creditors. FTX and its affiliated entities will continue to closely cooperate with the government and other relevant agencies to distribute funds through a compliant process, aiming to maximize distributable funds and minimize associated costs.
Hearings for the respective claims by each party are requested to be held in court, but it is currently unclear when these hearings will take place. The FTX debtor’s assets and the lawyers representing the creditors have yet to respond to these requests for comments.
