The U.S. Department of Justice seized more than $456 million in Robinhood shares owned by FTX co-founders Sam Bankman-Fried and Gary Wang.
A court filing dated Jan. 6 says the shares were seized because they constitute property involved in money laundering or wire fraud violations.
A lawyer for the Justice Department last week said that the it was seizing hundreds of millions of dollars in Robinhood shares linked to FTX. Bankman-Fried responded by filing a court action to block debtors from taking control of his stake in Robinhood.
The disgraced former CEO owns 90% of Emergent Fidelity Technologies, an entity that owns more than 50 million shares in Robinhood stock. Bankman-Fried stepped down as FTX CEO when the firm filed for bankruptcy protection in November.
Disclaimer: Beginning in 2021, Michael McCaffrey, the former CEO and majority owner of The Block, took a series of loans from founder and former FTX and Alameda CEO Sam Bankman-Fried. McCaffrey resigned from the company in December 2022 after failing to disclose those transactions.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://www.theblock.co/post/200100/robinhood-shares-seized-ftx?utm_source=rss&utm_medium=rss