Whose Billiondollar Assets are Seized by SBF

Whose Billiondollar Assets are Seized by SBF

Whose Billiondollar Assets are Seized by SBF

In the latest development of the FTX cryptocurrency exchange bankruptcy case, the controversy over the assets seized after founder SBF was convicted has intensified. 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 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 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, Emergent, the offshore entity established by SBF, and its liquidator have also filed 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, a group of FTX’s largest creditors led by lawyer Sunil Kavuri 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 activities towards the clients.

FTX stated in its application documents that despite opposition, having its claims approved by the bankruptcy court is in the best interest of all creditors. FTX and its affiliated entities will continue to closely collaborate with the government and other relevant entities to allocate funds through a compliant process, aiming to maximize the distributable funds and minimize associated costs.

Hearings for each party’s claims are requested to be held by the 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 these claims.