New reports suggest that the US government has confiscated assets totaling around $697 Million, most of which are more than 56,000,000 Robinhood shares owned by FTX co-founder, Sam Bankman-Fried. Court documents have revealed that the US authorities have seized a number of bank accounts connected to the US. Bankman-Fried, with millions in cash.
US Government Seizes Millions In Funds And Robinhood Stocks From FTX Co-FounderSBF denies client assets misappropriation
CNBC has reviewed court documents and found that almost all the funding was provided by 56,273,269 shares of Robinhood Markets Inc. (NasdaqHOOD), which were owned by Bankman-Fried. Using January 20, 2023 exchange rates, Hood’s shares are worth more than $526 million. Besides, according to CNBC reporters Rohan Goswami and MacKenzie Sigalos, nearly $56 million was seized from four bank accounts. Three of them were held at Silvergate Bank, and one was held at Moonstone Bank. An insider said that the company had $50 million in the account held at Moonstone Bank. All in all, the US government seized $171 million in cash from Bankman-Fried.
Alameda Research had invested $11.5 million in Moonstone Bank, also known as Farmington State Bank and FBH, Moonstone’s parent company. US prosecutors believe that the assets worth $697 million, mainly composed of Robinhood stocks, were purchased with funds stolen from FTX clients. Bankman-Fried has denied misappropriating any client assets, according to Sigalos’ Friday report.
In addition, federal agents have also confiscated funds held by SBF on cryptocurrency exchanges, including Binance and Binance US. The US government had announced plans to seize Robinhood shares in the first week of January 2023, with the US Department of Justice leading the process.
Bankman-Fried had attempted to get the shares back, claiming he needed the money for legal fees. The US government can seize funds from citizens suspected of participating in criminal activities, even without them being charged. Federal prosecutors do not believe the assets seized are part of the bankruptcy estate.
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