Multiple Claims Emerge for Seized Assets of Former FTX CEO Bankman-Fried
In the ongoing bankruptcy proceedings of FTX, three separate groups have recently filed claims over the assets seized from Sam Bankman-Fried following his criminal conviction.
The debtors’ estate of FTX, led by John Ray III, who replaced Bankman-Fried as CEO, filed a claim on Friday, asserting its right to six categories of assets seized by government prosecutors.
These assets include funds held at banks in the name of FTX-related entities, two private jets, funds held by Bankman-Fried and former FTX CFO Luk Wai Chan at Silvergate bank, political contributions made by Bankman-Fried and other FTX executives, and the proceeds from the sale of Robinhood shares held by an FTX entity called Emergent Fidelity Technology Ltd (“Emergent”).
The debtors’ estate argues that these assets never belonged to Bankman-Fried as they were acquired through criminal activities.
They claim that all the specific properties were held in the name of FTX Digital or a debtor entity and were funded by debtor assets.
According to the debtors’ estate, granting their claim over the assets would benefit all creditors and stakeholders in the bankruptcy proceedings, including victims of Bankman-Fried’s crimes.
However, two other claims have been filed over some of the assets, raising complications.
Emergent and its liquidators assert that Emergent still holds the title to the Robinhood shares and the proceeds from their sale.
They argue that Bankman-Fried never owned the shares or the cash held by Emergent, despite having an ownership interest in the entity.
Additionally, lawyers representing FTX creditors in a class-action suit in the Southern District of Florida have filed their own claims to several of the seized assets.
They contend that the forfeited assets,
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