In the latest development in the bankruptcy case of cryptocurrency exchange FTX, controversy has intensified over the seizure of assets following the conviction of founder SBF. According to The Block, three parties have filed claims against the assets, including the estate of the FTX debtor, a class of creditors, and Emergent, an offshore entity created by SBF.
FTX, led by John Ray III, reportedly filed claims on Friday over six categories of assets that were previously seized by the government from SBF. The assets, which include bank funds, two private jets, political donations and proceeds from the sale of Robinhood stock, are said to be worth a combined $10 billion. FTX emphasized in its claim that these assets never belonged to SBF personally and were derived solely from his criminal conduct.
In addition, Emergent Corporation, an offshore entity created by SBF, and its liquidator also filed a claim, claiming that although SBF owned 90% of Emergent's shares, the Robinhood stock and its funds were never owned by him personally. Emergent has filed for bankruptcy to litigate these claims.
Meanwhile, a class-action lawsuit filed in the Southern District of Florida by a group of FTX's largest creditors, led by attorney Sunil Kavuri, also claims those assets. The lawsuit claims the assets should have been returned to FTX's customers rather than delivered to the bankruptcy estate because they stemmed from SBF's defrauding of customers.
FTX said in its filing that despite objections, it is in the best interest of all creditors to have the bankruptcy court approve its claims. FTX and its affiliated entities will continue to work closely with the government and other relevant agencies to allocate funds through a compliant process designed to maximize the funds available for distribution and minimize related costs.
The parties have asked the court to hold hearings on their respective claims, but it is unclear when those hearings will take place. FTX Debtor Estate and attorneys representing creditors have not yet responded to requests for comment.
This article Three-way battle! Private jets, bank deposits... Who does the tens of billions of assets seized by SBF belong to? First appeared in Zombit.