The US government has seized hundreds of millions of dollars' worth of shares in Robinhood Markets Inc. as part of the fraud case against Sam Bankman-Fried.
According to a report on Bloomberg, the shares, which are now worth more than $460 million, are being contested by various creditors of FTX who have filed court cases in an effort to claim ownership of the shares. A hearing will be held at a later date to determine the fate of the seized shares and assets. The seizures are part of the fraud case against Bankman-Fried and other top FTX officials.
The shares were originally purchased by Sam Bankman-Fried in May 2022, and were a substantial amount, forming around 17.6% of Robinhood. Rumours are that SBF borrowed more than $1.5 billion from Alameda Research in order to finance the purchase.Seized bank accounts
In addition to the seizure of the Robinhood shares, the government is also taking control of a number of bank accounts that were linked to an FTX unit in the Bahamas. It is unclear at this time what assets are contained within these accounts, but it is likely that they will be subject to scrutiny as part of the fraud case against Bankman-Fried and other top FTX officials.
The future of the seized shares and assets is currently up in the air, as a court hearing has yet to be scheduled to determine their fate. It is possible that the shares will be sold off to pay off the debts of FTX, or they may be returned to the rightful owners if it is determined that they were acquired illegally.
It is also possible that the assets in the bank accounts could be sold off or returned to their owners depending on the outcome of the fraud case. Regardless of the outcome, the seizure of these assets is a major blow to Bankman-Fried.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.