FTX victims seek criminal forfeiture of company assets

Odaily News Different groups have made competing claims to some or all of the assets involved in the criminal case against former FTX CEO Sam Bankman-Fried, who is currently serving a 25-year sentence in federal prison. In a filing with the U.S. District Court for the Southern District of New York, lawyers representing FTX debtors and the company’s Bahamian entity, FTX Digital Markets, argue that they have “preferred rights” to assets that could be used to satisfy an $11 billion court judgment against Bankman-Fried. The legal team claims that FTX’s aircraft, funds held at Signature Bank, Farmington State Bank, and Silvergate Bank, sales of Robinhood stock, and political contributions associated with the former FTX executive should not be applied to Bankman-Fried’s judgment, but to victims of the defunct exchange. “The modification of the preliminary forfeiture order to provide for the return of specified property to the debtors and/or FTX Digital will benefit all creditors and stakeholders in the debtors’ Chapter 11 bankruptcy proceedings and FTX Digital’s liquidation in the Bahamas, including victims of Bankman-Fried’s crimes,” the filing states.