Sam Bankman-Fried’s financial empire has been officially dismantled, with a US federal court issuing a final order of forfeiture, seizing assets worth roughly $1 billion.
The ruling by the US District Court for the Southern District of New York marks the final step in stripping the disgraced FTX founder of his holdings following his conviction for fraud.
The extensive asset list includes cryptocurrencies, financial accounts, and two private jets—an indication of the staggering wealth he controlled before FTX collapsed in 2022.
The court’s order legally severs Bankman-Fried’s ownership of these holdings, placing them under government control. The ruling also underscores the significant role of Alameda Research, his trading firm, in accumulating these assets.
The forfeited holdings span multiple exchanges and financial institutions, revealing the extent to which FTX’s operations were intertwined with other major players in the crypto and banking sectors.
Government seizes crypto assets, cash, and aircraft
Among the most valuable assets confiscated are digital holdings tied to Alameda Research. These include $56 million in XRP, $3.6 million in Tron (TRX), $3.4 million in Cardano (ADA), and $2.3 million in Bitcoin (BTC), all held at Binance.
The largest single holding was the proceeds from the sale of Robinhood stock, amounting to $606 million and held by Bankman-Fried’s Emergent Fidelity Technologies.
Additional financial assets now under government control include:
$119 million in Tether (USDT) held at Binance$21 million at Marex held for Emergent Fidelity Technologies$50 million at Moonstone Bank for FTX Digital Markets$101 million at Silvergate for FTX Digital Markets$7 million at Flagstar Bank for Bankman-Fried and another individual
Beyond financial accounts and crypto holdings, the government has also seized two private jets: a 2009 Bombardier Global 5000 and a 2006 Embraer Legacy.
These aircraft serve as a reminder of the opulence Bankman-Fried enjoyed before FTX’s collapse led to his conviction.
Political donations clawed back as fallout spreads
The court order also documented over 250 political donations that have been pulled back.
Bankman-Fried, alongside other FTX executives, directed millions of dollars into political campaigns and state political organisations, creating widespread influence within Washington.
At one point, roughly one in three members of Congress had received funds from the now-defunct crypto exchange’s leadership.
This aspect of the ruling extends the reach of FTX’s financial entanglements far beyond the crypto sector.
With the return of these political donations, the case raises further questions about campaign financing and regulatory oversight within the US political system.
FTX bankruptcy payouts begin, but losses remain
Tuesday also marked the beginning of payouts to creditors affected by FTX’s 2022 collapse. Approximately $1.2 billion in repayments were issued to those who had smaller balances on the platform.
While these creditors are set to recover about 119% of their original account balances, they have missed out on the recent surge in cryptocurrency values.
Had they retained their holdings through the market recovery, their assets could have been worth significantly more.
The situation highlights the ongoing financial repercussions for former FTX users and investors, many of whom remain entangled in the lengthy bankruptcy process.
The forfeiture ruling closes a major chapter in the legal fallout from FTX’s collapse, but its impact continues to ripple through the financial sector, crypto markets, and political circles.
The extent of Bankman-Fried’s forfeited wealth underscores the scale of the scandal, cementing its place as one of the most significant financial fraud cases in modern history.
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