The U.S. Department of Justice seized the disputed Robinhood shares now worth $460 million
The Robinhood shares bought by FTX’s founder Sam Bankman-Fried and co-founder/CTO Gary Wang with a $546 million loan, have now been seized by the U.S. Department of Justice. The ownership of the shares had been disputed by crypto lender BlockFi, which sued Emergent Fidelity Technologies the day after filing for bankruptcy, SBF himself, and Yonathan Ben Simon, a creditor of FTX.
FTX’s new management had asked the court to intervene in the dispute by freezing the assets so that they couldn’t be used by Sam Bankman-Fried for the duration of the bankruptcy proceedings.
The seizure though is directly linked to the case against Sam Bankman-Fried, who faces 8 criminal charges to which he pled not guilty on Tuesday, rather than the FTX bankruptcy case itself. It is part of a larger seizure of all bank assets held by Sam Bankman-Fried.
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