US Department of Justice Seizes $450 Million in Dispute Robinhood Stock in FTX Case
The US Justice Department confiscated $450 million in Robinhood stock obtained by former CEO Sam Bankman-Fried in mid-2022. US Department of Justice Seizes $450...
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.
Synthetic currency68
Maybe you are interested:
More From Crypto News
Bitcoin Breaks Above $80,000 as US Treasury Cash Balance Jumps $148B
Bitcoin pushed above $80,000 as the US Treasury cash balance recorded a reported $148 billion increase, drawing attention to a timing overlap between the price...
Solana Hits 7-Month High Above $110 as Open Interest Jumps 18%
Solana broke above $110 for the first time in seven months, with SOL climbing 10. 75% to $112.
Cardano DReps Reject 12.29M ADA Treasury Proposal
Cardano’s delegated representatives (DReps) have rejected a governance proposal requesting 12. 29 million ADA from the Cardano treasury, marking another instanc...
Robinhood Engineers Charged Over Alleged Crypto Listing Trades
Federal prosecutors in New York have charged two former Robinhood engineers with commodities fraud and wire fraud, alleging they traded Hyperliquid perpetual fu...
Software Flaw Let Nearly 4,000 BTC Leave Liquid Reserve
A software flaw in the Liquid Network allowed nearly 4,000 BTC to exit the platform’s reserve through a mechanism that the network’s own validation logic treate...
US Treasury Sanctions Iranian Crypto Exchange BitBank
The US Treasury’s Office of Foreign Assets Control (OFAC) has sanctioned BitBank, an Iran-based cryptocurrency exchange, according to a Treasury press release.
