US Government Seizes $700 Million in Assets From Disgraced FTX Co-Founder Sam Bankman-Fried

Federal prosecutors person seized $697 cardinal successful assets, mostly comprised of much than 56 cardinal Robinhood shares worthy $526 million, from FTX co-founder Sam Bankman-Fried. Court filings elaborate that the U.S. authorities seized a bid of slope accounts belonging to Bankman-Fried, holding millions successful cash.

US Government Seizes Millions successful Cash and Robinhood Shares From FTX Co-Founder; SBF Denies Misappropriation of Customer Assets

The U.S. authorities has seized astir $700 million from the erstwhile FTX CEO and co-founder, Sam Bankman-Fried (SBF), according to tribunal documents reviewed by CNBC. Most of the funds came from the 56,273,269 shares of Robinhood Markets Inc. (Nasdaq: HOOD) owned by Bankman-Fried. Using speech rates from Jan. 20, 2023, the Hood shares are worthy much than $526 million.

Furthermore, CNBC reporters Rohan Goswami and MacKenzie Sigalos item that astir $56 cardinal held successful 4 slope accounts was seized arsenic well. Three accounts holding $6 cardinal were allegedly held astatine Silvergate Bank and 1 relationship reportedly held astatine Moonstone Bank held $50 million. In total, $171 cardinal successful currency was taken by the national authorities from Bankman-Fried. Moonstone Bank explained connected Jan. 19, 2023, that the fiscal instauration volition officially beryllium exiting the crypto space.

Alameda Research invested $11.5 million into Moonstone Bank, besides known arsenic Farmington State Bank, done FBH, Moonstone’s holding company. Federal prosecutors judge the $697 cardinal successful assets, mostly made up of Robinhood shares, were acquired utilizing funds stolen from FTX customers. Bankman-Fried maintains his innocence and has “denied misappropriating lawsuit assets,” Sigalos explained connected Friday.

Additionally, national agents besides seized funds that belonged to SBF that were held connected the crypto exchanges Binance and Binance US. The U.S. authorities revealed intentions to prehend the Robinhood shares during the archetypal week of January 2023, and the U.S. Department of Justice (DOJ) initiated the process.

Bankman-Fried attempted to regain entree to the shares, noting that helium needed the wealth to wage for ineligible expenses. The U.S. authorities tin prehend funds from citizens suspected of wrongdoing without needfully charging them with a transgression and from charged suspects awaiting trial. Federal prosecutors bash not judge the assets seized are the spot successful the bankruptcy estate.

What bash you deliberation astir Federal prosecutors seizing astir $700 cardinal from SBF? Share your thoughts successful the comments conception below.

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