Federal prosecutors have seized $697 million in belongings, largely comprised of greater than 56 million Robinhood shares value $526 million, from FTX co-founder Sam Bankman-Fried. Court docket filings detailed that the U.S. authorities seized a collection of financial institution accounts belonging to Bankman-Fried, holding thousands and thousands in money.
US Authorities Seizes Thousands and thousands in Money and Robinhood Shares From FTX Co-Founder; SBF Denies Misappropriation of Buyer Belongings
The U.S. authorities has seized almost $700 million from the previous FTX CEO and co-founder, Sam Bankman-Fried (SBF), in keeping with courtroom paperwork reviewed by CNBC. A lot of the funds got here from the 56,273,269 shares of Robinhood Markets Inc. (Nasdaq: HOOD) owned by Bankman-Fried. Utilizing trade charges from Jan. 20, 2023, the Hood shares are value greater than $526 million.
Moreover, CNBC reporters Rohan Goswami and MacKenzie Sigalos element that almost $56 million held in 4 financial institution accounts was seized as properly. Three accounts holding $6 million had been allegedly held at Silvergate Financial institution and one account reportedly held at Moonstone Financial institution held $50 million. In complete, $171 million in money was taken by the federal authorities from Bankman-Fried. Moonstone Financial institution defined on Jan. 19, 2023, that the monetary establishment will formally be exiting the crypto house.
Alameda Analysis invested $11.5 million into Moonstone Financial institution, often known as Farmington State Financial institution, by FBH, Moonstone’s holding firm. Federal prosecutors imagine the $697 million in belongings, largely made up of Robinhood shares, had been acquired utilizing funds stolen from FTX prospects. Bankman-Fried maintains his innocence and has “denied misappropriating buyer belongings,” Sigalos defined on Friday.
Moreover, federal brokers additionally seized funds that belonged to SBF that had been held on the crypto exchanges Binance and Binance US. The U.S. authorities revealed intentions to grab the Robinhood shares through the first week of January 2023, and the U.S. Division of Justice (DOJ) initiated the method.
Bankman-Fried tried to regain entry to the shares, noting that he wanted the cash to pay for authorized bills. The U.S. authorities can seize funds from residents suspected of wrongdoing with out essentially charging them with a criminal offense and from charged suspects awaiting trial. Federal prosecutors don’t imagine the belongings seized are the property within the chapter property.
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