In the latest development of the bankruptcy case of the cryptocurrency exchange FTX, the controversy over the assets seized after founder SBF was convicted is escalating. According to The Block, three parties have now filed claims for these assets, including the estate of FTX debtors, 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 their source was entirely from his criminal activities.
In addition, Emergent, an offshore entity founded by SBF, and its liquidator have also filed claims, claiming that despite SBF owning 90% of the shares in Emergent, the Robinhood stocks and funds were never his personal property. Emergent has filed for bankruptcy in order to litigate these claims.
Meanwhile, the largest group of creditors led by lawyer Sunil Kavuri filed a collective lawsuit in the Southern District of Florida against these assets. The lawsuit claims that these assets should be returned to FTX’s clients rather than handed over to the bankruptcy estate, as they originate from SBF’s fraudulent activities towards the clients.
FTX stated in its application documents that despite objections, 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 work closely with the government and other relevant agencies to distribute the funds through a compliant process, aiming to maximize the available funds for distribution and minimize associated costs.
Hearings for each party’s claims will be held in court, but it is currently unclear when these hearings will take place. The estate of FTX debtors and the lawyers representing the creditors have not responded to requests for comments on these claims.
