FTX Prosecutors Seize $698M in SBF’s Property #FTX #Prosecutors #Seize #698M #SBFs #Belongings


Federal prosecutors have seized just about $700 million in property from disgraced FTX founder Sam Bankman-Fried.

According to a Friday (Jan. 20) court docket submitting, a bulk of the seizures were being in the type of 55.2 million shares in Robinhood, really worth $526.2 million. This, as the crypto trade is reportedly checking out a return to investing.

The submitting explained the federal government also seized practically $56 million from a few distinctive bank accounts, together with $5.3 million from the cryptocurrency-centered financial institution Silvergate and $49.9 million from Moonstone Bank.

As PYMNTS has composed, Moonstone Lender was “one of the more stunning belongings to arrive to gentle all through FTX’s personal bankruptcy.” The crypto exchange held a scaled-down possession stake in the tiny lender in rural Washington state.

Bankman-Fried, 30, is accused of multiple counts of fraud and conspiracy connected to the failure of FTX last calendar year. Prosecutors say that the collapse started when he diverted shopper property to sister enterprise Alameda Exploration, using individuals resources for investments, serious estate buys and political donations.

Bankman-Fried, who has maintained his innocence, had sought in courtroom to block the governing administration from seizing the Robinhood shares, with his lawyers arguing the shares are not section of the FTX personal bankruptcy.

They additional that when FTX debtors haven’t demonstrated they would be “irreparably injured” by denial of the declare to the shares, Bankman-Fried needs some of the assets to fund his defense.

“Mr. Bankman-Fried has not been located criminally or civilly liable for fraud, and it is inappropriate for the FTX Debtors to inquire the Court docket to basically assume that every little thing Mr. Bankman-Fried at any time touched is presumptively fraudulent,” his lawyers claimed in a court filing before this thirty day period.

That submitting arrived at the identical time that two other entities issued requests for the Robinhood shares: crypto loan company BlockFi, from which Bankman-Fried had taken financial loans and pledged the shares as collateral, and the liquidators for Emergent Fidelity Know-how in Antigua.

PYMNTS noted previous 7 days that FTX’s native token FTT was developing in benefit pursuing an announcement by new CEO John J. Ray III that the firm was checking out a return to crypto trading functions.

“I’m happy Mr. Ray is eventually shelling out lip support to turning the exchange again on just after months of squashing this sort of attempts!” Bankman-Fried tweeted in reaction to the reviews, including that he is even now “waiting for [Ray] to ultimately admit FTX US is solvent and give prospects their money back.”

PYMNTS Data: Why Individuals Are Seeking Electronic Wallets

A PYMNTS analyze, “New Payments Options: Why Consumers Are Trying Electronic Wallets” finds that 52% of US individuals tried out a new payment process in 2022, with lots of deciding upon to give digital wallets a test for the first time.

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