The United States Office of Justice has reportedly seized or was in the process of seizing more than $400 million in Robinhood shares linked to FTX as part of the case against the cryptocurrency exchange.
According to a January 4 note from Reuters, US officials told a judge they were in the process of seizing assets linked to FTX and its former CEO, Sam Bankman-Fried, including 56 million Robinhood shares, worth about $468 million at the time. The news followed a judge in the criminal case against Bankman-Fried ordering him not to access or transfer any cryptocurrency or FTX or Alameda assets.
Amid FTX’s bankruptcy proceedings, control of Robinhood’s shares has been in dispute as many investors and creditors seek to recover. BlockFi, Bankman-Fried and FTX creditor Yonathan Ben Shimon have all claimed the assets.
On January 3, in federal court, BAnkman-Fried has pleaded not guilty to eight criminal charges including wire fraud, securities fraud and violations of campaign finance laws. He also previously denied moving funds from Alameda, saying he no longer had access to the wallets since he stepped down as a top executive in November.
The former FTX CEO has been under house arrest at his parents’ California home since December, but has been allowed to travel for approved reasons, including court appearance in New York. His trial date was set for October 2.
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