Fed seizes nearly $700 million in FTX assets in Sam Bankman-Fried case

Former FTX chief Sam Bankman-Fried (C) arrives to plead earlier than U.S. District Choose Lewis Kaplan in federal courtroom in Manhattan, New York January 3, 2023.

Ed Jones | AFP | Getty Photos

Federal prosecutors seized practically $700 million in money and property associated to Sam Bankman-Fried, principally within the type of Robinhood inventory owned by the FTX founder, a courtroom submitting revealed Friday.

John Ray, who succeeded Bankman-Fried as CEO leads the restructuring of FTX, is trying to salvage funds misplaced by the crypto firm’s depositors when the corporate went bankrupt in November. Bankman-Fried was arrested in December on legal fraud costs and is being launched on $250 million bail whereas awaiting trial.

The 55 million+ shares of Robinhood are on the heart of a contentious multi-party battle between Caribbean litigants, representatives from bankrupt crypto lender BlockFi, Bankman-Fried himself and the chapter management of FTX.

Federal prosecutors have claimed that Robinhood inventory was included within the buy allegedly stolen buyer funds. In Might Bankman Fried uncovered that he purchased a 7.6% stake in Robinhood and mentioned on the time, “We predict it is a sexy funding.” The inventory closed at $9.52 on Friday, valuing the reclaimed shares at over $526 million.

Bankman-Fried has denied misappropriation of consumer funds.

Three of the confiscated accounts have been held at silver gate Financial institution on behalf of FTX Digital Markets holding over $6 million. These property, held on behalf of a Bahamian subsidiary, have been taken over by the federal government “on or about”. eleventh January. Silvergate not too long ago introduced that buyer deposits plummeted practically 70% within the fourth quarter of 2022.

Virtually $50 million was withheld moonstone financial institutiona US monetary establishment with ties to FTX administration, courtroom filings present.

Federal prosecutors haven’t disclosed the worth of funds or property held in a single Binance account and two Binance.US account numbers. These three Binance accounts have been the one property seized that had no values ​​connected.

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