The aftermath of the FTX collapse unfolds further with a new legal dispute arising over assets seized from Sam Bankman-Fried (SBF), the former CEO currently serving a 24-year prison term.

Various parties are vying for control of these seized assets, which include airplanes, bank-held funds, Robinhood stock previously owned by SBF, and political contributions tied to former FTX executives.

Several parties, including FTX debtors and FTX Digital Markets, have filed a petition in the Southern District Court of New York asserting their right to the seized assets. They argue that these funds should be used to repay creditors, suggesting a potentially greater recovery than what the current bankruptcy plan proposes.

However, a separate petition has been filed by a group of FTX customers, represented by noted crypto lawyers Adam Moskowitz and David Boies. This group, including FTX customer Sunil Kavuri, who testified against SBF, opposes the debtors' claim. They argue that the seized assets should be returned directly to FTX users, bypassing the bankruptcy process, as Bankman-Fried allegedly misappropriated their digital assets.

The legal battle is complex, awaiting a decision from Judge Lewis Kaplan. Both sides present arguments regarding the legitimacy of their claims and the best approach to recovering lost funds.

This dispute over seized assets is just one aspect of the broader fallout from the FTX collapse. The bankruptcy proceedings continue, with concerns raised by creditors like Kavuri regarding the proposed reorganization plan. Meanwhile, sentencing for other former FTX executives, including Caroline Ellison and Gary Wang, is pending.

The court's ruling on the seized assets will have significant implications for FTX customers and the wider cryptocurrency industry. It could influence recovery rates for victims and shape the industry's future response to such incidents.