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 has escalated. According to The Block, three parties have now made claims on these assets, including the estate of FTX’s debtor, a class of creditors, and an offshore entity established by SBF called Emergent.
Reportedly, FTX led by John Ray III filed claims on six categories of assets last Friday, which were previously confiscated by the government from SBF. These assets include bank funds in SBF’s name, two private planes, political donations, and proceeds from the sale of Robinhood stocks, with a total estimated value of up to $10 billion. FTX emphasized in the claims application that these assets never belonged to SBF personally, as they were entirely derived from his criminal activities.
Furthermore, Emergent, an offshore entity founded by SBF, and its liquidator have also made claims, asserting 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 claiming ownership of these assets. The lawsuit argues that these assets should be returned to FTX’s clients instead of being handed over to the bankrupt estate, as they originated from SBF’s fraudulent activities towards the clients.
FTX stated in its application documents that despite opposition, obtaining approval for their 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 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 are requested to be held in court, although it is currently unclear when these hearings will take place. The estate of FTX’s debtor and the lawyers representing the creditors have not yet responded to requests for comments on the claims.