The US Justice Department confiscated $450 million in Robinhood stock obtained by former CEO Sam Bankman-Fried in mid-2022.
According to info from the Delaware bankruptcy court, which handles the bankruptcy of cryptocurrency exchange FTX, the US Department of Justice has made the decision to stage in and confiscate $450 million in disputed stock involving FTX and other impacted organizations.
The garnishment buy was issued by the New York court, which is managing US Department of Justice fraud and fraud costs towards former FTX CEO Sam Bankman-Fried, on the grounds that he was utilised as proof for the investigation of this character and the errors at FTX – Alameda. Mr. Bankman-Fried on January four chose not to plead guilty and is established to battle legally with the US government.
As reported by Coinlive, the aforementioned 56 million Robinhood shares (well worth $450 million) have been challenged by several events, like:
– FTX Exchange, which believes that Mr. Sam Bankman-Fried utilised the assets of FTX customers to get shares.
– Loan company BlockFi, which explained Sam Bankman-Fried utilised these shares as collateral for a loan to BlockFi and is now bankrupt when he does not get his mortgage loan.
– Emergent Fidelity Technologies, a subsidiary produced by Sam Bankman-Fried to impact stock purchases.
– Mr. Sam Bankman-Fried himself, who holds the stock order papers.
The motive anyone would like to personal this stock is for the reason that it is the only really liquid asset held by FTX/Alameda, which can effortlessly be converted into money.
An lawyer uncovered in a Delaware court that Robinhood’s stock had been seized from accounts in excess of which FTX’s creditors had no handle. The U.S. Justice Department will problem the seizure discover in the coming days.
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