Feds seize almost $700 million of FTX assets in Sam Bankman-Fried criminal case

Former FTX chief govt Sam Bankman-Fried (C) arrives to enter a plea earlier than US District Choose Lewis Kaplan within the Manhattan federal court docket, New York, January 3, 2023. 
Ed Jones | AFP | Getty Photographs

Federal prosecutors seized almost $700 million in money and property related to Sam Bankman-Fried, primarily within the type of Robinhood shares that have been owned by the FTX founder, a court docket submitting revealed Friday.

John Ray, who changed Bankman-Fried as CEO to guide FTX’s restructuring, is making an attempt to rescue funds that have been misplaced by the crypto firm’s depositors when the agency spiraled out of business in November. Bankman-Fried was arrested on felony fraud expenses in December and is launched on a $250 million bond as he awaits trial.

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

Federal prosecutors have alleged that the Robinhood shares have been bought utilizing allegedly stolen buyer funds. In Might, Bankman-Fried revealed that he’d bought a 7.6% stake in Robinhood and stated on the time “we expect it’s a beautiful funding.” The inventory closed Friday at $9.52, valuing the recovered shares at over $526 million.

Bankman-Fried has denied misappropriating buyer property.

Three of the seized accounts have been held at Silvergate Financial institution, within the identify of FTX Digital Markets, holding over $6 million. These property, held within the identify of a Bahamian subsidiary, have been assumed by the federal government “on or about” Jan. 11. Silvergate just lately disclosed that buyer deposits plunged by almost 70% within the fourth quarter of 2022.

Virtually $50 million was custodied at Moonstone Bank, a U.S. monetary establishment with ties to FTX administration, the court docket submitting exhibits.

Federal prosecutors didn’t disclose the worth of funds or property in a single Binance account and two Binance.US account numbers. These three Binance accounts have been the one seized property that didn’t have values connected to them.

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