U.S. authorities will take management of Robinhood shares which can be underneath dispute by FTX-related events, in keeping with varied studies on Jan. 4.
These studies point out that the U.S. Division of Justice (DOJ) both has seized or is presently seizing Robinhood shares associated to FTX.
Throughout a listening to, counsel for the DOJ stated that the property should not a part of FTX’s chapter property and due to this fact don’t must be frozen like different FTX property. That counsel additionally stated that different property are being seized and that each the Robinhood shares and different property might be managed additional in forfeiture proceedings.
A number of events assert that they’ve a proper to the Robinhood shares. Former FTX CEO Sam Bankman-Fried, particular person investor Yonatan Ben Shimon, lending agency BlockFi, and FTX itself have all tried to put declare to the disputed property.
FTX and Alameda lately requested a freeze on the shares of their chapter proceedings, whereas BlockFi has requested for the shares to be moved to a impartial account. Statements from at this time’s listening to point out that the shares are being seized in connection to the prison case in opposition to Bankman-Fried, not on the request of FTX.
The Robinhood shares underneath dispute had been bought on behalf of Bankman-Fried by his holdings firm, Emergent Constancy Applied sciences, final Could.
Emergent purchased these 56.2 million shares for $648.3 million. The shares had been price $482 million shortly after buy. At current, they’re price simply $465 million.
