In an interesting development, the FTX Debtors’ Estate is currently fighting claims from certain parties regarding the ownership of assets seized by Sam Bankman-Fried (SBF) following the former FTX CEO’s criminal conviction for fraud and money laundering. In a complaint filed on Friday, the debtor’s estate has now moved to the US District Court for the Southern District of New York to institute concurrent proceedings and deal with these claims.
FTX: A Three-Way Fight Appears on SBF’s Foraged Goods
The FTX Debtors Estate has applied for the rights to claim all of Sam Bankman-Fried’s seized assets divided into six main categories namely proceeds from the sale of Robinhood shares held in the name of Emergent Fidelity Technologies (another subsidiary of SBF), funds Accounts at FTX Digital Markets at Farmington State Bank and Silvergate Bank, funds in Binance accounts under Alameda Research Ltd. and Evergreen North Enterprises, two airplanes, funds in Bankman-Fried’s Signature Bank account and former FTX Exec. Luk Wai Chan, and the Political contributions of Bankman Fried, and other former FTX employees traceable to embezzlement and money laundering.
According to their filing, the FTX Debtors Estate is seeking a superior right, over Sam Bankman-Fried, to these certain assets as they were all held in the name of the company or funded by the assets of the company.
However, Emergent’s management has applied for the rights to claim profits from shares in the Robinhood market. Based on their request, while Bankman-Fried may be the majority owner of Emergent, the stock in question was purchased on behalf of the company and not the defendant.
Meanwhile, a class-action suit by a group of FTX creditors re-claims all of the seized assets saying they were purchased by FTX customers and should be returned to these customers in lieu of the FTX creditors’ estate.
In addition, this group of creditors intends to offer negative compensation, returning assets to creditors on a 1:1 basis instead of in dollar form as proposed by the bankruptcy estate. In addition, the class action lawsuit also criticized the obligation of the debtor’s estate to pay non-customer creditors e.g.
After the review of these appeals, the court will give each party a hearing date to judge their claims accordingly regarding the seized assets. After that, the relevant authorities will be notified to ensure the proper distribution of these assets.
Crypto Market Overview
In other news, the total crypto market fell by 3.2% last week to the value of $ 2.3 trillion.
Featured image from Forkast, chart from Tradingview
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