FTX victims seek criminal forfeiture of company assets

Various groups have made competing claims on some or all of the assets involved in the criminal case against former FTX CEO Sam Bankman-Fried. Bankman-Fried is currently serving a 25-year sentence in federal prison.

In a filing with the US Southern District Court of New York, lawyers representing FTX debtors and the company's Bahamian entity, FTX Digital Markets, argued that they have "priority" over assets that could be used to satisfy the $11 billion judgment against Bankman-Fried. The legal team claims that FTX's plane, funds held at Signature Bank, Farmington State Bank, and Silvergate Bank, the sale of Robinhood stock, and political donations related to the former FTX executive should not be applied to Bankman-Fried's judgment, but rather to victims of the now-defunct exchange.

The filing states: "Modifying the preliminary forfeiture order to provide for the return of specific property to the debtors and/or FTX Digital will benefit debtors in their chapter 11 bankruptcy proceedings and all creditors and stakeholders of FTX Digital in the Bahamian liquidation, including victims of Bankman-Fried's crimes."