Feds have Seized $700M Belonging to FTX Founder
- Federal prosecutors have seized close to $700 million in assets belonging to the founder of crypto exchange FTX, Sam Bankman-Fried.
- The court filing said that the “government respectfully gives notice that the property subject to forfeiture” includes assets across fiat, shares, and crypto.
- The biggest share of the seizure includes 50 million Robinhood (HOOD) shares which amount to more than $550 million.
- The authorities also took control of three of the FTX founder’s accounts at the world’s largest crypto exchange, Binance.
The founder of the former multi-billion dollar crypto exchange that collapsed in November this year, Sam Bankman-Fried, also known as SBF in the crypto space, has witnessed a significant downfall in his wealth. Once a multi-billionaire, SBF is now spending whatever wealth he has left to secure himself from being put behind bars. However, according to a report, federal prosecutors have seized close to $700 million in assets belonging to the crypto entrepreneur.
A CNBC report, which cited court filings on Friday, stated that the federal prosecutors seized $700 million, which was present mostly in the form of Robinhood shares, which the founder of FTX had purchased in 2022 amid the harsh crypto winter. Interestingly, many contenders have come forward, asking the court to transfer the shares to their names.
It is crucial to note that the value of the 50 million Robinhood (HOOD) shares crosses the $500 million mark, and Bankman-Fried had purchased over 7.6% of the American financial services company headquartered in Menlo Park, California, earlier this year. Additionally, at the time of purchase, the former FTX CEO stated that he believed Robinhood shares to be “an attractive investment.”
Following the collapse of the crypto exchange, several entities have come forward and demanded the ownership of the assets. One of them is bankrupt crypto lender BlockFi, followed by Caribbean litigants, Bankman-Fried himself, and the current leadership of FTX, which includes the exchange’s new CEO, John Ray, who is working to restore the exchange to its former glory.
Federal prosecutors claim that the Robinhood shares were purchased by the FTX founder through the client funds that he mismanaged and justified their seizure of the same. Additionally, three of the seized accounts were held at the Silvergate Bank, a Californian bank that mostly deals in cryptocurrency transactions and has witnessed a significant drop in transactions following the onset of the crypto winter.
These accounts at Silvergate Bank were in the name of FTX Digital Markets and held a cumulative amount of $6 million. Additionally, $50 million was deposited at Moonstone Bank, a Washington State bank that specializes in catering to small and medium enterprises (SMEs) and consumers with technology-driven solutions. Moonstone had ties to FTX and recently confirmed its exit from the crypto space and return to its “original mission” as a community bank.
Additionally, federal prosecutor Damian Williams stated in the filing that the “government respectfully gives notice that the property subject to forfeiture” includes assets across fiat, shares, and crypto. He also confirmed that the authorities will be taking control of three of the FTX founder’s accounts at the world’s largest crypto exchange, Binance, and its US arm, Binance.US.
On the other hand, as reported earlier by BitcoinWisdom, the current CEO of FTX is exploring the possibility of restarting the bankrupt exchange and is also trying to help the customers of the exchange get their money back.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
