U.S. Department of Justice Seizes $600 Million of Robinhood Shares Owned by Former FTX CEO

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Robinhood stock and cash seized

The U.S. Department of Justice (DOJ) has announced that 55 million shares of Robinhood (HOOD) owned by former CEO Sam Bankman-Fried (hereinafter referred to as “SBF”) of the failed cryptocurrency exchange FTX. It was revealed that more than 2.7 billion yen worth of US dollars was seized.

Robinhood, which provides investment apps in the United States, is valued at $8.55 at the time of writing. The 55 million shares represent a market value of ¥60 billion ($456 million). As part of the asset consolidation of FTX, which filed for bankruptcy under Chapter 11 (Chapter 11) of the U.S. Bankruptcy Code in November 2010, FTX creditors (lending company BlockFi, etc.), SBF, etc. are subject to a legal battle. was becoming

FTX’s current management team, led by new CEO John Ray, requested a freeze on these HOOD shares at the end of December. Neither party has ownership of the shares at the time of writing due to the DOJ foreclosure.

The HOOD shares that were seized were owned through Emergent Fidelity Technologies, the holding company of SBF and FTX co-founder Gary Wang, according to DOJ filings with the New Jersey bankruptcy court on Thursday. It was held in an account of British-affiliated financial broker ED&F Mann Capital Markets.

Relation:Hollywood also pays attention to the story of the rise and fall of FTX, and production rushes one after another

SBF appeals

The seized property is considered the proceeds of, or property connected to, criminal and civil law violations related to crimes such as money laundering and wire fraud. An eight-item indictment was filed against SBF on December 9, 2010, including conspiracy to commit wire fraud, wire fraud, and conspiracy to defraud merchandise.

SBF pleaded not guilty to eight criminal charges at a public hearing on the 3rd, and it was decided that the trial will start on 2nd October, 2023.

Relation:Former FTX CEO Sam pleads not guilty to arraignment

Lawyers for SBF, which owned 90% of HOOD’s 55 million units, filed a document on the 6th. It objected to the DOJ’s move, stating that “Emergent is not party to the bankruptcy.” The plan was to use the HOOD shares to pay the attorney’s fees.

The US federal government has announced plans to seize many assets related to FTX, not just Robinhood shares. “We are in the process of forfeiture of criminal proceeds, whether civil or criminal, starting with Silvergate Bank, which has done business with FTX,” Justice Department attorney Seth Shapiro told a bankruptcy court hearing on Jan. 4. .

FTX’s current management announced on Jan. 8 that about 117 entities have expressed interest in bidding on four businesses it is considering selling under bankruptcy proceedings. About 41 entities are said to be interested in bidding for Japanese exchange FTX Japan.

Relation:More than 100 organizations interested in bidding for FTX business sale including Japanese cryptocurrency exchange

The post U.S. Department of Justice Seizes $600 Million of Robinhood Shares Owned by Former FTX CEO appeared first on Our Bitcoin News.

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