Last Updated on January 21, 2023 by Bitfinsider
A court filing disclosed Friday that federal authorities took approximately $700 million in cash and assets related to Sam Bankman-Fried, mostly in the form of Robinhood shares owned by the FTX founder.
John Ray, who took over as CEO of FTX when Bankman-Fried stepped down, is attempting to recoup monies lost by the crypto company’s depositors after it declared bankruptcy in November. Bankman-Fried was arrested in December on criminal fraud allegations and is being held on a $250 million bail while awaiting trial.
The 55 million or so Robinhood shares are at the center of a complicated multi-party struggle including Caribbean plaintiffs, representatives of insolvent crypto lender BlockFi, Bankman-Fried himself, and the bankruptcy leadership of FTX.
According to federal authorities, the Robinhood shares were acquired with allegedly stolen consumer monies. Bankman-Fried stated in May that he had bought a 7.6% interest in Robinhood, saying at the time that “we think it is a good investment.” The stock ended at $9.52 on Friday, putting the recovered shares at more than $526 million.
Bankman-Fried has denied stealing from customers.
Three of the confiscated accounts, totaling more than $6 million, were held at Silvergate Bank in the name of FTX Digital Markets. The government took over the assets, which were held in the name of a Bahamian company, “on or about” January 11. Silvergate has revealed that in the fourth quarter of 2022, consumer deposits fell by approximately 70%.
According to the court petition, about $50 million was held at Moonstone Bank, a U.S. banking institution with links to FTX management.
The worth of monies or assets in one Binance account and two Binance accounts was not disclosed by federal prosecutors.
Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: Above are some affiliate links and we may collect a share of sales or other compensation from the links on this page.
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.