US DOJ publicizes seizure of 55M Robinhood shares

by Jeremy

America Division of Justice has formally notified the courtroom dealing with the chapter of FTX that it has seized belongings in accordance with prison circumstances in opposition to the crypto trade and its executives.

In a Jan. 6 courtroom submitting, the Justice Division mentioned it had seized 55,273,469 shares of Robinhood to which former FTX CEO Sam Bankman-Fried, BlockFi, and FTX creditor Yonathan Ben Shimon had made claims — price greater than $450 million on the time of publication. The DOJ famous it had additionally taken management of greater than $20 million in U.S. forex from the brokerage agency ED&F Man Capital Markets.

Stories from Jan. 4 had recommended the the Justice Division was within the strategy of seizing the Robinhood shares as a part of the case in opposition to FTX. Bankman-Fried’s authorized group confirmed on Jan. 5 the DOJ had moved ahead with seizing the shares, however nonetheless argued the previous FTX CEO had a declare to the belongings “to pay for his prison protection”.

“The fees 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,” mentioned the courtroom submitting. “The Indictment contains forfeiture allegations, searching 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.”

This story is growing and will likely be up to date.