Cryptocurrency

DOJ Seizes $470 Million in Robinhood Shares From FTX Executives

Sam Bankman-Fried (SBF) and his former right-hand, Gary Wang, are unable to retain possession of virtually half a billion {dollars} value of Robinhood shares, in accordance with a court docket doc dated January sixth.

The US Division of Justice (DOJ) has seized the executives’ holdings in response to fees of wide-ranging fraud in opposition to Bankman-Fried and FTX, with which the fairness investments could also be concerned. 

No Extra Robinhood Shares

The doc, filed in a New Jersey chapter court docket, revealed that the DOJ had seized 55,273,469 shares of Robinhood, alongside one other $20,746,713.67 from ED&F Man Capital Markets – a holding firm managed by each SBF and Wang. With every Robinhood share buying and selling at $8.50 at writing time, the entire worth of the seized inventory and money is roughly $490 million. 

Based on the Division, the seized property depend as property and proceeds concerned in violations of varied legal statutes, together with wire fraud and cash laundering. Final month, a grand jury within the Southern District of New York returned an eight-count indictment charging SBF with such crimes, alongside conspiracy to commit securities fraud, commodities fraud, and marketing campaign finance violations.

 “The Authorities expects that the proof will present that Bankman-Fried defrauded FTX prospects by misappropriating their funds for his private use, together with to take a position for his personal account, to make undisclosed enterprise investments,” wrote the DOJ.

The DOJ confirmed intent to grab the shares final week – 90% of which had been owned by Bankman-Fried, and 10% by Wang. Bankman-Fried’s attorneys objected to the potential seizure on the time, claiming it was “inappropriate” to routinely assume these shares had been purchased with illegitimate funds. 

Testifying to Congress final month, FTX’s chapter lawyer and new CEO, John Ray, acknowledged that FTX comingled person property with Alameda Analysis, the place these property had been used for margin buying and selling. 

What Does SBF Have Left?

Throughout an interview at Dealbrook Summit in November, SBF claimed to solely have $100,000 left in his checking account – an inkling of his multi-billion greenback web value previous to FTX’s collapse. 

Bankman-Fried was extradited to the US from the Bahamas on the DOJ’s order in December however was later launched on $250 million bail. He’s locked within the Northern District of California whereas awaiting trial and disallowed from taking out any new strains of credit score till then. 

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