Officials are reportedly in the process of seizing 56 million shares of Robinhood linked to FTX and its former CEO, Sam Bankman-Fried, from a bankruptcy judge.
As part of the case against the crypto exchange, the US Department of Justice reportedly seized or was in the process of seizing more than $400 million in Robinhood shares linked to FTX.
According to a Reuters report from January 4, US officials told a judge that they were in the process of seizing assets related to FTX and its former CEO, Sam Bankman-Fried, including 56 million shares of Robinhood — worth approximately $468 million at the time of publication. The report comes a day after a judge in SBF’s criminal case barred him from accessing or transferring any cryptocurrency or assets from FTX or Alameda.
Control of the Robinhood shares has been contested amid FTX’s bankruptcy proceedings, as many investors and creditors seek to be made whole. The assets have been claimed by BlockFi, Bankman-Fried, and FTX creditor Yonathan Ben Shimon.
On January 3, Bankman-Fried pleaded not guilty in federal court to eight criminal counts, including wire fraud, securities fraud, and violations of campaign finance laws. He also previously denied transferring funds from Alameda, claiming that he no longer had access to the wallets after stepping down as CEO in November.
Since December, the former FTX CEO has been under house arrest at his parent’s home in California, but he has been allowed to travel for approved reasons, including appearing in court in New York. His trial has been scheduled for October 2.