3 months ago
The aftermath of the FTX illness continues to unfold, with a caller ineligible conflict emerging implicit millions of dollars successful assets seized from Sam Bankman-Fried (SBF), the erstwhile CEO presently serving a 24-year situation sentence.
Multiple parties are seeking power of the assets seized from SBF and erstwhile FTX executives. The assets see airplanes, funds held astatine assorted banks, shares of Robinhood banal erstwhile owned by SBF, and adjacent governmental contributions linked to FTX executives.
Multiple parties
FTX debtors, on with the company’s Bahamian arm, FTX Digital Markets, person filed a petition successful the Southern District Court of New York seeking power of assets seized from SBF.
The debtors reason they person the “superior right” to the seized assets and that these funds should beryllium utilized to repay creditors. In their June 14 filing, lawyers for the debtors claimed this attack would connection a greater betterment than what the existent bankruptcy plan proposes.
However, a abstracted petition filed by a radical of FTX customers has emerged arsenic a imaginable hurdle for the debtors. Represented by salient crypto lawyers Adam Moskowitz and David Boies, the plaintiff radical includes Sunil Kavuri, an FTX lawsuit who testified against SBF during his trial.
Kavuri is besides 1 of the creditors objecting to the projected FTX reorganization plan.
The lawsuit petition argues the seized assets should beryllium returned straight to FTX users, bypassing the bankruptcy process altogether. They contend that Bankman-Fried straight stole their integer assets, and these funds rightfully beryllium to them.
Court battle
Judge Lewis Kaplan has yet to regularisation connected either petition. The ineligible conflict is apt to beryllium complex, with each broadside presenting arguments regarding the legitimacy of their claims and the champion people of enactment to retrieve mislaid funds.
The combat implicit seized assets is conscionable 1 facet of the ongoing FTX fallout. The wide bankruptcy lawsuit continues, with creditors similar Kavuri voicing concerns astir the projected reorganization plan.
Additionally, sentencing for different erstwhile FTX executives, including Caroline Ellison and Gary Wang, who cooperated with prosecutors, is inactive pending.
The court’s determination connected the seized assets volition beryllium intimately watched, with implications for some FTX customers and the broader crypto ecosystem. The solution of this lawsuit could interaction the wide betterment rates for victims and power the semipermanent interaction of the exchange’s demise connected the crypto industry.
The station FTX debtors seeking SBF’s seized assets, customers record counterclaim appeared archetypal connected CryptoSlate.
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