The collapse of FTX and the subsequent criminal conviction of its former CEO, Sam Bankman-Fried, have led to a heated dispute over the ownership of assets valued at over $11 billion. The assets in question include cryptocurrencies, private planes, and funds held in bank accounts. Three parties are now locked in a legal battle, each claiming rightful ownership: FTX debtors, creditor groups, and an offshore entity established by Bankman-Fried.

The FTX debtors argue that the seized assets were acquired through Bankman-Fried's criminal activities and therefore never truly belonged to him. They assert that these assets should be considered part of the bankruptcy estate and used to satisfy creditor claims. On the other hand, Emergent, the offshore company created by Bankman-Fried, claims ownership of hundreds of millions of dollars worth of Robinhood stocks and proceeds from sold stocks.

The largest group of FTX creditors, represented by Sunil Kavuri, asserts that the forfeited assets originated from Bankman-Fried's fraudulent actions against FTX customers, not the FTX companies. They argue that these assets should be returned to the customers, who were victims of Bankman-Fried's massive fraud scheme. Bankman-Fried was sentenced to 25 years in prison in March for diverting billions of dollars from FTX customer funds to finance personal ventures, political contributions, and personal expenditures.

FTX's bankruptcy lawyers argue that granting their claims would serve the best interest of the creditors, potentially allowing customers to recover their lost funds, along with interest, from a pool of assets assembled since FTX's collapse in 2022. These assets include digital currencies and shares in startups, which may be sold to facilitate repayments. The legal battle over FTX assets has sparked hope for potential recovery among FTX customers, who were left reeling after the exchange's sudden collapse.