US authorities seize $460m of Robinhood shares linked to FTX

In a hearing before the Delaware bankruptcy court, the US Department of Justice announced the seizure of $460 million worth of Robinhood shares from FTX. Sam Bankman-Fried and bankrupt crypto lender Blockfi are highly opposed to the shares.

fight over robinhood shares

FTX co-founder Gary Wang and then-CEO Sam Bankman-Fried founded Emergent in May 2022. The holding company wanted to acquire publicly traded shares. Robin Hood platform. In an affidavit filed in December, he disclosed receiving loans totaling $546 million from Alameda Research to pay for the shares.

At the hearing, a representative for FTX said it was unclear who owned the shares. In addition to FTX creditors, blockfi There was another potential claimant to the shares. According to BlockFi, Bankman-Fried guaranteed the shares. Now the bankrupt business has filed a lawsuit to get back the pledged shares.

proceed to freeze the outstanding shares of the creditors

SBF, Wang and Alameda Research CEO Carolyn Ellison are the subjects of criminal proceedings in the Southern District of New York. James Bromley, FTX’s lawyer, said on 4 January that the court had mandated the seizure. The seized items are related to Robinhood stock.

Bromley spoke to the following litigants. The Fall of FTX And the upcoming Chapter 11 bankruptcy of BlockFi in November 2022, as well as ongoing processes in Antigua and Barbuda regarding Robinhood shares:

“We are clearly reserving our rights with respect to debtors and expect that other parties are as well, but wanted to make sure it was clear that the Robinhood shares that were being seized are from those accounts. which are not currently under the control of the debtors.

James Bromley, FTX Attorney

The Justice Department announced at the hearing that it would submit a notice of seizure outlining all assets taken from FTX by the agency.

The next court date is January 20, 2023. The sitting judge closed the day’s agenda to focus on FTX, Robinhood shares and any new developments.

In addition to bank and wire fraud, money laundering and conspiracy, Bankman-Fried, Wang and Ellison face several other crimes. If convicted on all counts, all three could spend the rest of their lives in federal prison.

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