FTX Victims Seek Criminal Forfeiture of Company Assets

Different groups have filed competing claims for 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 in the US District Court for the Southern District of New York, lawyers representing FTX debtors and the company's Bahamian entity, FTX Digital Markets, argued that they have a "first right of refusal" on assets that could be used to satisfy the court's $11 billion judgment against Bankman-Fried. The legal team claimed that FTX's airplanes, funds held at Signature Bank, Farmington State Bank and Silvergate Bank, the sale of Robinhood stock and political contributions related to former FTX executives should not be applied to the Bankman-Fried judgment, but rather to the victims of the defunct exchange. The document states. 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 proceeding and the liquidation of FTX Digital in the Bahamas, including the victims of Bankman-Fried's crimes," the document said. "