The market is full of lawsuits connected to FTX, in a recent development the United States Department of Justice has filed a forfeiture complaint to seize cryptocurrencies held in Binance accounts the estimated value by the authorities of the held asset is $16 million.
Per the filing, the suspected funds are allegedly LinkedIn with Sam Bankman Fried the founder of the collapse crypto exchange.
Worth noting that held tokens and coins are composed of AVAX tokens, XRP, Internet Computer (ICP), Cardano, Ripple, and Solana. As per finance experts, Sam was one of those who had good relationships with other companies in the digital asset market.
The lurative behavior has helped gather a huge spotlight for the development of FTX which also made the exchange famous in just a few months after its launch.
The information about the funds came in the news after a reported withdrawal of $40 million worth of USDT from the wallets of its now bankrupt trading arm Alameda Research for bribing the official of China.
In the last quarter of 2021, several blockchain analysis firms reported that the reported wallets linked to Sam Bankman Fried transferred crypto worth millions in several transactions.
Available information quotes, that the U.S. government holds Bitcoins and other cryptocurrencies worth billions, and from time to time it presents its seizure funds to auction.
Will FTX and Subsidiaries Succeed in Fund Recovery?
Since its bankruptcy, FTX has filed several lawsuits against companies, entities, and persons to recover some amount of their holdings that they invested in those companies in their initial days.
Most recently it was reported that FTX filed a lawsuit against Binance and its former CEO in order to recover over $1.5 billion. It also filed a case against Waves and its founder to recover its investment of $80 million which it invested in March 2022.
FTX still holds the title of most Collaboration and sports funding among the crypto-based Companies. At the height of his popularity, he was number 41 on the list of the 400 wealthiest Americans. The indication of dishonest and deceptive trading was prevalent in the broader market when his net worth surpassed $22B by the end of Q1, 2022.
Source: CoinMarketCap
Despite being the founder of FTX. Sam worked as a professional trader and was well-known for his crypto strategies, which contributed to his early success.
The unstoppable growth in revenue of FTX, Sam, and its linked companies and founding members has sparked investigations and attention. After FTX became public, the exchange, its trading arm, and a few other companies filed for bankruptcy as a result of illicit operations and other financial catastrophes.
Available reports note that A24 and Apple will collectively produce a movie about FTX and its founder Sam Bankman Fried. Variety said on November 12, 2024, that renowned author and filmmaker Lena Dunham will script the film.
The yet-to-be-released film on SBF “Going Infinite,” a popular book by a known writer. Yet Lena will create the screenplay. The flight is expected to give a thorough account of Sam and FTX covers every event from its inception until its demise.
