Feds seize practically $700 million in FTX belongings in Sam Bankman-Fried case

Former FTX CEO Sam Bankman-Fried (C) arrives to enter an announcement earlier than US District Decide Lewis Kaplan in federal courtroom in Manhattan, New York on January 3, 2023.

Ed Jones | AFP | Getty Photographs

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

John Ray, who changed Bankman-Fried as CEO to steer the restructuring of FTX, is making an attempt to rescue the funds that the crypto firm’s depositors misplaced when the corporate filed for chapter in November. Bankman-Fried was arrested on felony fraud fees in December and is free on $250 million bail pending trial.

Robinhood’s greater than 55 million shares are on the heart of a contentious multiparty battle between Caribbean litigants, representatives of crypto lender BlockFi, Bankman-Fried itself and FTX’s chapter management.

Federal prosecutors alleged that Robinhood inventory was bought with allegedly stolen buyer funds. In Might, Bankman-Fried revealed it had purchased a 7.6% stake in Robinhood and stated on the time “we predict it is a beautiful funding.” Shares closed Friday at $9.52, valuing the reclaimed shares at greater than $526 million.

Bankman-Fried denied misappropriating consumer belongings.

Three of the seized accounts have been held in Silvergate Financial institution, on behalf of FTX Digital Markets, has over $6 million. These belongings, held within the identify of a Bahamian subsidiary, have been taken over by the federal government “on or about” January. 11. Silvergate just lately revealed that buyer deposits fell by virtually 70% within the fourth quarter of 2022.

Nearly $50 million was held in custody at Moonstone Financial institution, a US monetary establishment with ties to FTX administration, in response to the courtroom submitting.

Federal prosecutors didn’t disclose the worth of funds or belongings in a Binance account and two Binance.US account numbers. These three Binance accounts have been the one belongings seized that had no securities connected to them.

SEE: FTX CEO is open to restarting operations

FTX CEO is open to restarting operations at embattled company

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