Federal prosecutors have seized $697 million in assets, mostly comprised of more than 56 million Robinhood shares worth $526 million, from FTX co-founder Sam Bankman-Fried. Court filings detailed that the U.S. government seized a series of bank accounts belonging to Bankman-Fried, holding millions in cash.
US Government Seizes Millions in Cash and Robinhood Shares From FTX Co-Founder; SBF Denies Misappropriation of Customer Assets
The U.S. government has seized nearly $700 million from the former FTX CEO and co-founder, Sam Bankman-Fried (SBF), according to court documents reviewed by CNBC. Most of the funds came from the 56,273,269 shares of Robinhood Markets Inc. (Nasdaq: HOOD) owned by Bankman-Fried. Using exchange rates from Jan. 20, 2023, the Hood shares are worth more than $526 million.
Furthermore, CNBC reporters Rohan Goswami and MacKenzie Sigalos detail that nearly $56 million held in four bank accounts was seized as well. Three accounts holding $6 million were allegedly held at Silvergate Bank and one account reportedly held at Moonstone Bank held $50 million. In total, $171 million in cash was taken by the federal government from Bankman-Fried. Moonstone Bank explained on Jan. 19, 2023, that the financial institution will officially be exiting the crypto space.
Alameda Research invested $11.5 million into Moonstone Bank, also known as Farmington State Bank, through FBH, Moonstone’s holding company. Federal prosecutors believe the $697 million in assets, mostly made up of Robinhood shares, were acquired using funds stolen from FTX customers. Bankman-Fried maintains his innocence and has “denied misappropriating customer assets,” Sigalos explained on Friday.
Additionally, federal agents also seized funds that belonged to SBF that were held on the crypto exchanges Binance and Binance US. The U.S. government revealed intentions to seize the Robinhood shares during the first week of January 2023, and the U.S. Department of Justice (DOJ) initiated the process.
Bankman-Fried attempted to regain access to the shares, noting that he needed the money to pay for legal expenses. The U.S. government can seize funds from citizens suspected of wrongdoing without necessarily charging them with a crime and from charged suspects awaiting trial. Federal prosecutors do not believe the assets seized are the property in the bankruptcy estate.
Tags in this story
Alameda Research, Assets, bank accounts, Binance, Binance.us, Cash, crypto space, customers funds, DOJ, Farmington State Bank, FBH, ftx, FTX customers, legal expenses, misappropriation, Moonstone Bank, Robinhood shares, Sam Bankman-Fried, Seizure, Silvergate Bank, suspected wrongdoing, U.S. Department of Justice, U.S. Government
What do you think about Federal prosecutors seizing nearly $700 million from SBF? Share your thoughts in the comments section below.
Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
More Popular News
In Case You Missed It
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on April 5 jumping to $43 per transfer. 12 days later, average ether fees are close to dropping below $10 per transaction and median-sized … read more.
