The U.S. Department of Justice (DOJ) on Monday seized $465 million in stocks of the stock-trading app Robinhood which can be partly owned via disgraced former FTX CEO Sam Bankman-Fried, or SBF, who sought after get right of entry to to the inventory to assist pay his felony charges.

Key Takeaways

  • DOJ seized about $465 million in Robinhood stocks from Bankman-Fried, announcing it didn’t consider the stake used to be a part of the FTX chapter property. 
  • U.S. Attorney Seth Shapiro stated competing claims to stocks of the stock-trading app can also be resolved thru forfeiture court cases.
  • Other belongings associated with the failed centralized cryptocurrency change FTX had been seized by the use of separate court docket filings.

Several Claims to Assets

According to U.S. Attorney Seth Shapiro, DOJ did not consider the 56 million stocks of Robinhood, value about $465 million, had been the valuables of FTX’s chapter property. Shapiro stated competing claims to stocks of the stock-trading app can also be resolved thru forfeiture court cases. In addition to Bankman-Fried, a number of banks and crypto companies have laid declare to the Robinhood inventory, together with BlockFi, a now-bankrupt crypto lender; FTX; and liquidators in Antigua.

Additional Assets Seized

A legal professional main the principle FTX insolvency continuing within the U.S. stated the federal government may be seizing belongings in financial institution accounts which can be a part of a chapter case involving a unit of the FTX empire within the Bahamas.

Separately, court docket filings on Jan. 4 confirmed that an FTX arm held $93 million at Silvergate Capital Corp., a crypto-focused California financial institution that used to be ordered seized closing month via a New York federal Justice of the Peace.

The Bottom Line

Customers and collectors are sifting during the stays of FTX’s crypto empire in an try to retrieve some budget after the corporate filed for chapter. BlockFi alleges that Bankman-Fried used the Robinhood stake as collateral for a mortgage to his buying and selling company Alameda Research.

Various collectors of FTX have filed court docket instances to check out to realize keep an eye on of the belongings. A court docket listening to in the end will make a decision at the possession of stocks and belongings seized from financial institution accounts tied to FTX and its former executives.

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