• 34ºc, Sunny

FTX victim seeks criminal forfeiture of company assets

In the criminal case against former FTX CEO Sam Bankman-Fried, different groups have filed competing claims for some or all of the assets involved. Sam Bankman-Fried is currently serving a 25-year sentence in federal prison. In a filing with the US District Court for the Southern District of New York, lawyers representing FTX debtors and FTX Digital Markets, the company's Bahamian entity, argued that they had "priority" over assets that could be used to satisfy the court's $11 billion judgment against Bankman-Fried. The legal team claimed that FTX's aircraft, funds held in Signature Bank, Farmington State Bank and Silvergate Bank, the sale of Robinhood shares and political donations linked to former FTX executives should not be applied to Bankman-Fried's judgment but to victims of the defunct exchange. "Modifying the preliminary forfeiture order to provide for the return of specified property to the debtor and/or FTX Digital will benefit all creditors and stakeholders in the debtor's Chapter 11 bankruptcy proceedings and FTX Digital's liquidation in the Bahamas, including victims of Bankman-Fried crimes," the document said.