Battle of Three Who Owns the Billions in Assets Seized by SBF Private Jets Bank Deposits

Battle of Three Who Owns the Billions in Assets Seized by SBF Private Jets Bank Deposits

Battle of Three Who Owns the Billions in Assets Seized by SBF Private Jets Bank Deposits

In the latest development of the bankruptcy case involving the cryptocurrency exchange FTX, the controversy over the assets seized after founder SBF was convicted has escalated. 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 created by SBF called Emergent.

Reportedly, FTX led by John Ray III filed claims on six categories of assets seized from SBF by the government last Friday. These assets include bank funds, 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 their claim that these assets never belonged to SBF personally and were entirely derived from his criminal activities.

Additionally, Emergent, the offshore entity established by SBF, and its liquidator have also filed claims, arguing 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.

At the same time, a group of FTX’s largest creditors led by lawyer Sunil Kavuri has filed a class-action lawsuit in the Southern District of Florida against these assets. The lawsuit claims that these assets should be returned to FTX’s clients instead of being handed over to the bankruptcy estate, as they originate from SBF’s fraudulent activities towards the clients.

FTX stated in their application documents that despite the opposing views, obtaining approval from the bankruptcy court for their 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 the available distribution of funds 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. FTX debtors’ assets and the lawyers representing the creditors have not yet responded to requests for comments on these claims.