The US Department of Justice has ordered the forfeiture of $465 million worth of Robinhood shares linked to Sam Bankman-Fried. Bankrupt crypto firms BlockFi, FTX and liquidators in Antigua claim Bankman-Fried as well as Robinhood stock
US prosecutors are in the process of seizing shares in Robinhood Markets Inc linked to Sam Bankman-Fried, who is accused of fraud in the collapse of the FTX cryptocurrency exchange, a US lawyer told a judge on Wednesday.
The Justice Department did not believe Robinhood's 56 million shares, worth about $465 million, were assets of a bankruptcy estate, US attorney Seth Shapiro told US Bankruptcy Judge John Dorsey, who is overseeing the FTX bankruptcy.
Shapiro said competing claims to shares of the stock-trading app could be worked out in the forfeiture proceedings. Bankrupt crypto firms BlockFi, FTX and liquidators in Antigua have claimed Bankman-Fried as well as Robinhood stock.
Prosecutors have accused Bankman-Fried of engaging in a "fraud of epic proportions" that potentially cost investors, customers and lenders billions of dollars by using customer deposits to support her Alameda Research hedge fund. make allegations.
Bankman-Fried pleaded not guilty to the wire fraud and conspiracy counts. He has acknowledged risk-management failings at FTX, but said he did not believe he was criminally liable.
Bankman-Fried bought about 7.42% of Robinhood's stock through Emergent Fidelity Technologies Ltd., using money borrowed from Alameda Research, according to an affidavit she filed with an Antigua court in December.
Bankman-Fried said she owned 90% of Emergent and Gary Wang, another former FTX executive, owned 10%. Wang has pleaded guilty to fraud charges stemming from the FTX collapse and is cooperating with prosecutors.
Shapiro also said that prosecutors had seized US bank accounts linked to FTX's Bahamas-based business, known as FTX Digital Markets. Court records show about $143 million in accounts at Silvergate Bank and Farmington State Bank, which does business as Moonstone Bank
No comments:
Post a Comment