Federal prosecutors have seized $697 million in assets from FTX co-founder Sam Bankman-Fried, consisting primarily of over 56 million Robinhood shares worth $526 million. The company’s assets were seized. Court filings detail that the U.S. government seized a series of bank accounts owned by Bankman-Fried that held millions of dollars in cash.
U.S. Government seizes millions of dollars in cash and Robinhood stock from FTX co-founder; SBF denies misappropriation of client assets
According to court documents reviewed by CNBC, the U.S. government seized approximately $700 millionfrom former FTX CEO and co-founder Sam Bankman-Fried (SBF). Most of the money came from 56,273,269 shares of Robinhood Markets Inc. (Nasdaq: HOOD) owned by Bankman-Fried; using exchange rates from January 20, 2023, Hood shares are worth 526 million worth more than $502 million.
In addition, CNBC reporters Rohan Goswami and MacKenzie Sigalos detailed that approximately $56 million held in four bank accounts were also seized. and one account allegedly held at Moonstone Bank held $50 million. In total, $171 million in cash was taken from Bankman-Fried by the federal government. Moonstone Bankexplained that on January 19, 2023, the financial institution will officially exit the crypto space
Alameda Research invested $11.5 millionin Moonstone Bank, also known as Farmington State Bank, through Moonstone’s holding company, FBH. Federal prosecutors believe the $697 million in assets, consisting mostly of Robinhood stock, was acquired using funds stolen from FTX customers.Bankman-Fried maintains his innocence and “denies misappropriation of customer assets,” Sigalos said Friday. He explained.
In addition, federal agents also seized funds belonging to SBF that were held at crypto exchanges Binance and Binance US. The U.S. government announced its intention to seize Robinhood shares during the first week of January 2023, and the U.S. Department of Justice (DOJ) has initiated that process.
Bankman-Fried attempted to regain access to the stock, noting that he needed the money to pay his legal fees. The U.S. government can seize funds from citizens suspected of wrongdoing or indicted suspects awaiting trial, without necessarily charging them with a crime. Federal prosecutors do not consider the seized assets to be property of the bankruptcy estate.
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