Just In: $700M Worth Robinhood Assets Linked to FTX Ex-CEO Seized by US Feds

• Sam Bankman-Fried’s assets valued at almost $700 million will be subject to forfeiture if he’s found guilty of fraud.
• Federal prosecutors did not disclose the value of funds or assets in one Binance account and two Binance.

The U.S. Department of Justice (DOJ) has seized nearly $700 million worth of assets from former FTX CEO Sam Bankman-Fried, including $55 million in Robinhood shares and $6 million in cash held at Silvergate Bank.

The DOJ alleges that Bankman-Fried used the seized assets to prop up his cryptocurrency exchange, FTX, and to pay for personal expenses. Bankman-Fried has pleaded not guilty to the charges.

The seized assets also include $50 million in cash held at Moonstone Bank and more than $20 million in an account in the name of Emergent Fidelity Technologies, a shell company that Bankman-Fried created with FTX co-founder Gary Wang.

Prosecutors say that the Robinhood shares were purchased using allegedly stolen customer funds, while Bankman-Fried still denies misappropriating customer assets.

The DOJ’s seizure of Bankman-Fried’s assets is a significant development in the ongoing investigation into FTX. The exchange has been accused of a number of irregularities, including market manipulation and failing to register as a securities exchange.

The seizure of Bankman-Fried’s assets is a sign that the DOJ is taking the allegations against FTX seriously. It remains to be seen whether the DOJ will be able to prove that Bankman-Fried committed any crimes, but the seizure of his assets is a major setback for the embattled exchange.

In addition to the seized assets, Bankman-Fried is also facing a number of civil lawsuits. The Securities and Exchange Commission (SEC) is investigating FTX for potential securities violations, and the Commodity Futures Trading Commission (CFTC) is also looking into the exchange.

The future of FTX is uncertain. The exchange has been forced to lay off staff and cut back on its operations. It remains to be seen whether FTX will be able to survive the ongoing investigations and lawsuits.