In the latest development of the bankruptcy case involving the cryptocurrency exchange FTX, the controversy over the assets confiscated after the conviction of the founder SBF has escalated. According to The Block, three parties have now filed claims for these assets, including the estate of the FTX debtor, a class of creditors, and an offshore entity established by SBF called Emergent.
Reportedly, FTX led by John Ray III filed claims for six categories of assets last Friday, which were previously seized by the government from SBF. These assets include bank funds in the name, 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 the claim application that these assets never belonged to SBF personally and were entirely derived from his criminal activities.
In addition, the offshore entity Emergent established by SBF and its liquidator also filed claims, asserting that despite SBF owning 90% of the shares in Emergent, the Robinhood stocks and funds were never owned by him personally. 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, claiming for these assets. The lawsuit alleges that these assets should be returned to FTX’s clients rather than being delivered to the bankruptcy estate, as these assets stem from SBF’s fraudulent activities towards the clients.
FTX stated in its application documents that despite opposition, obtaining approval for its claims from the bankruptcy court is in the best interest of all creditors. FTX and its affiliated entities will continue to closely cooperate with the government and other relevant entities to distribute funds through a compliant process, aiming to maximize distributable funds and minimize associated costs.
Hearings for each party’s claims 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 not responded to requests for comments on the claims.