In response to the US DOJ, the Robinhood shares have drawn possession claims from a number of events, together with SBF and FTX collectors.
The US Division of Justice (DOJ) not too long ago disclosed that it seized a bit over 55 million Robinhood shares valued at greater than $450 million. The federal legislation enforcer additionally mentioned it confiscated greater than $20 million in fiat forex. In response to the US DOJ, the seized Robinhood shares and US forex align with its ongoing felony case towards Sam Bankman-Fried. The disgraced former FTX CEO is going through felony fees in New York following his extradition from the Bahamas in late December.
In a January sixth courtroom submitting, the DOJ formally notified the courtroom dealing with the BlockFi chapter of its asset’s seizure. In response to the US federal govt division, the 55,273,469 Robinhood shares are allegedly linked to BlockFi, SBF, and FTX creditor Yonathan Ben Shimon. Each events beforehand made competing claims to the buying and selling app’s inventory. In the meantime, the DOJ additionally mentioned it took possession of greater than $20 million in US forex from ED&F Man Capital Markets.
A part of the DOJ courtroom submitting read:
“The costs within the Indictment come up from an alleged wide-ranging scheme by the defendant to misappropriate billions of {dollars} of buyer funds deposited onto FTX, the worldwide cryptocurrency trade based by Bankman-Fried.”
The doc additionally states:
“The Indictment contains forfeiture allegations, looking for to forfeit property that constitutes or was derived from proceeds traceable to the conspiracy to commit wire fraud, wire fraud, and property concerned within the conspiracy to commit cash laundering.”
US DOJ Alleges SBF Sought Entry to Robinhood Shares to Pay Authorized Charges
The Division of Justice opined that SBF laid declare to the Robinhood inventory to assist pay his authorized charges. Nevertheless, the DOJ additionally mentioned that it didn’t consider the stake was a part of the FTX chapter property. In the meantime, weighing in on the competing claims to the Robinhood inventory, US Lawyer Seth Shapiro instructed a decision by way of forfeiture proceedings. Along with SBF and Ben Shimon, liquidators in Antigua have additionally claimed the $465 million Robinhood stake.
In associated information, BlockFi alleges that SBF used the Robinhood stake as collateral for his buying and selling agency Alameda Analysis.
In response to studies, the DOJ additionally seized different property linked to the failed trade by way of separate courtroom filings. These embody $93 million in funds held at California crypto financial institution Silvergate Capital Corp.
In mild of FTX’s demise, collectors and prospects have been sifting by the trade’s stays for salvageables. This last-gasp try and retrieve any funds comes as varied collectors transfer to achieve management of the sunken crypto’s property.
SBF has pleaded not responsible to the eight felony fees towards him, together with wire fraud and misuse of buyer funds. Nevertheless, former Alameda Analysis CEO Caroline Ellison and FTX co-founder Gary Wang beforehand pleaded responsible to related fees.
SBF’s trial begins on October 2nd, and if discovered responsible, the once-celebrated crypto character may resist 115 years in jail.
Tolu is a cryptocurrency and blockchain fanatic primarily based in Lagos. He likes to demystify crypto tales to the naked fundamentals in order that anybody wherever can perceive with out an excessive amount of background data.
When he is not neck-deep in crypto tales, Tolu enjoys music, likes to sing and is an avid film lover.