Feds Seize Nearly $700 Million of FTX Assets in Sam Bankman-Fried Criminal Case

A court filing revealed that federal prosecutors seized almost $700 million of cash and assets related to Sam Bankman Fried, primarily Robinhood shares, which were owned by the founder of FTX.

John Ray was the CEO who succeeded Bankman-Fried. guide FTX’s restructuring, who is trying to save funds that were stolen by depositors of the crypto company in November when it went bankrupt. As he waits for his trial, Bankman-Fried was remanded on $250 million bail after he was charged with criminal fraud.

The contentious multi-party fight over 55 million Robinhood shares is at the core of a contentious multiparty battle between Caribbean litigants as well as representatives of Bankman Fried himself and Bankrupt Crypto lender BlockFi.

Federal prosecutors allege that Robinhood shares have been purchased using allegedly stolen customer funds. Bankman Fried in May revealed Robinhood was 7.6% owned by him, he stated at the time “we think it is an attractive investment.” The stock closed Friday night at $9.52. This valued the recovered shares at $526 million.

Bankman-Fried has denied misappropriating customer assets.

Three of the confiscated accounts were taken into custody at Silvergate Bank in the name FTX Digital markets, holds over $6 million. These assets, which were held under the name of a Bahamian affiliate, were taken over by the government “on or about” Jan. 11. Silvergate recently revealed that customer deposits fell by almost 70% during the fourth quarter 2022.

A little over $50 million was taken into custody Moonstone BankThe court filing shows that, a U.S. bank, has ties to FTX management.

Federal prosecutors didn’t disclose the value or assets of one Binance.US account number and two Binance.US accounts numbers. The only assets seized were those three Binance accounts, which did not have any value attached.

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