The FTX bankruptcy story keeps getting more intense as three groups are now fighting over the assets seized from Sam Bankman-Fried (SBF). SBF was ordered to forfeit a whopping $11 billion worth of assets. It was argued that all the assets were either under a Debtor entity or FTX Digital and were funded by Debtor assets.
A Class Lawsuit Over FTX and SBF’s Assets
The defunct company, FTX Trading Ltd that is looking for ways to cut down its tax bill to the biggest creditor, the US Internal Revenue Service (IRS) has three entities asserting claims over its ex-CEO’s assets. In a filing led by the FTX Debtors’ estate, CEO John Ray III submitted a claim last Friday for six types of assets seized from Bankman-Fried.
The six assets include funds in banks under FTX-related entities Alameda Research, FTX Digital Markets, and two private jets. Also, Bankman-Fried and former FTX CFO Luk Wai Chan’s funds at Silvergate Bank, political contributions from Bankman-Fried and other FTX executives.
Most importantly, the proceeds from the sale of Robinhood shares held by an FTX entity named Emergent Fidelity Technology Ltd. Prior to its collapse, FTX purchased a large number of Robinhood shares.
The estate further states that granting its request over the assets will benefit all creditors and stakeholders in the bankruptcy proceedings as it was previously announced.
Battle for Ownership of Robinhood Shares
Emergent is claiming ownership of the shares and the sold proceedings of Robinhood shares. The offshoot is arguing that it never belonged to SBF. The Debtors’ estate disagreed with Emergent’s claims and has advised to settle on the Robinhood shares without more legal actions.
The court proceedings on Robinhood shares had to be paused due to SBF’s sentences. Notably, the lawsuit led by Sunil Kavuri’s lawyers for the FTX creditor group in Florida is also claiming many of the assets in question.
In a twist of event, Robinhood Crypto recently bagged a Wells Notice from the US Securities and Exchange Commission (SEC) for violating securities laws. This was shortly after the brokerage listed Shiba Inu to its New York traders.
It remains unclear whether the SEC will pursue an actual legal proceedings against Robinhood and how the twist will impact the FTX-linked HOOD claimants.
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