Federal prosecutors have seized $697 million in assets, mostly made up of more than 56 million Robinhood shares worth $526 million, from FTX co-founder Sam Bankman-Fried. Court documents detailed that the US government seized a series of bank accounts belonging to Bankman-Fried, which held millions in cash.
US Government Seizes Millions In Cash And Robinhood Stock From FTX Co-Founder; SBF denies misappropriation of client assets
The US government has seized almost 700 million dollars of former FTX CEO and co-founder Sam Bankman-Fried (SBF), according to court documents reviewed by CNBC. Most of the funding came from the 56,273,269 shares of Robinhood Markets Inc. (Nasdaq: HOOD) owned by Bankman-Fried. Using January 20, 2023 exchange rates, Hood’s shares are worth more than $526 million.
Additionally, CNBC reporters Rohan Goswami and MacKenzie Sigalos detail that nearly $56 million was also seized from four bank accounts. Three accounts with $6 million were allegedly maintained at Silvergate Bank, and one account at Moonstone Bank reportedly held $50 million. In all, the federal government took $171 million in cash from Bankman-Fried. moonstone bench explained on January 19, 2023, that the financial institution will officially exit the crypto space.
Alameda Investigation invested $11.5 million at Moonstone Bank, also known as Farmington State Bank, through FBH, Moonstone’s holding company. Federal prosecutors believe the $697 million in assets, mostly made up of Robinhood stock, were acquired with funds stolen from FTX clients. Bankman-Fried maintains its innocence and has “denied misappropriation of client assets,” Sigalos explained on Friday.
In addition, federal agents also seized funds belonging to SBF that were held on the Binance and Binance US cryptocurrency exchanges. The US government disclosed intentions to seize Robinhood shares during the first week of January 2023, and the US Department of Justice (DOJ) initiated the process.
Bankman-Fried tried to regain access to the shares, saying he needed the money to pay legal fees. The US government can seize funds from citizens suspected of committing a crime without necessarily charging them with a crime and from accused suspects awaiting trial. Federal prosecutors do not believe that the seized assets are owned by the bankruptcy estate.
What do you think about federal prosecutors seizing nearly $700 million from SBF? Share your thoughts in the comments section below.
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