U.S. officials will take 460 million shares of Robinhood in an FTX fraud investigation

Sam Bankman-Fried, the creator of FTX, exits the Manhattan Federal Court after his arrest and bail hearings on December 22, 2022, in New York City. 

Seth Shapiro, an attorney for the Department of Justice (DOJ), told the bankruptcy court on Wednesday that U.S. authorities want to take 460 million dollars worth of Robinhood Markets Inc. shares tied to Sam Bankman-Fried, the former CEO of the collapsed cryptocurrency exchange FTX.com situated in the Bahamas.

Shapiro said during the Delaware bankruptcy court hearing that the DOJ did not consider the shares to be part of a bankruptcy estate and that their owners may be discovered via a forfeiture case.

Bankman-Fried and FTX cofounder Gary wang founded Emergent Fidelity Technologies Ltd. in May 2022 to buy 56 million Robinhood shares with $546 million in loans from Alameda Research, FTX’s trading business.

Late in December, attorneys for FTX asked that the shares be frozen while legal processes continue.

John J. Ray III, the new CEO of FTX, informed Congress on December 13 that the exchange had lost $8 billion in client deposits and that Bankman-Fried and other exchange officials had access to consumer assets.

Depending on the outcome of his case, Bankman-Fried might spend the rest of his life behind bars for alleged crimes including bank and wire fraud, money laundering, and conspiracy.

Wang and the previous head of Alameda Research, Caroline Ellison, have both accepted plea bargains for shorter terms.

Also Read: Notable Research Firm Issues Warning Concerning Cryptocurrency Market

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

- Advertisement -

Comments are closed.