The US Department of Justice confiscated Sam Bankman-Fried’s $450 million stock in Robinhood.
Authorities testified in a virtual court hearing in Delaware that the federal government had seized and is in the process of confiscating a number of assets linked to the bankrupt crypto company FTX.
Ministry of Justice in Action
The assets could later be the subject of a forfeiture lawsuit, as Justice Department lawsuits against FTX’s former CEO, SBF, and its top executives, Gary Wang and Carolyn Ellison, are pending.
FTX, which filed for bankruptcy on November 11, asked federal court to comment on its ownership of approximately $450 million worth of Robinhood shares. There is a dispute between BlockFi, SBF, and FTX creditor Yonathan Ben Shimon over who owns the shares.
Seth Shapiro, a Department of Justice attorney, told the Delaware bankruptcy court that one of the motions put forward was “related to Robinhood shares, which the federal government has also seized.”
The SBF denied charges related to money laundering and fraud the other day.