The FTX controversy keeps on unfolding and making discoveries at each turn. At this time, US officials have frozen several million dollars in the possession of Sam Bankman-Fried (the former CEO and founder of the now-bankrupt crypto exchange FTX). The federal officials of the US have in advance seized a minimum of $150M chunk in assets connected to him.
$700M Worth of Bankman-Fried’s Assets to Be Forfeited If Court Discovers Him Guilty
A court filing submitted on Friday disclosed that a huge sum of the respective assets was stored in the form of stocks at Robinhood. Assets, cash, and stocks accumulated to nearly $700M have currently been caught by the US authorities amid the ongoing investigation against Sam Bankman-Fried (or SBF). As revealed by the United States Department of Justice, the Robinhood shares’ seizure was carried out at the start of January.
However, a detailed series of confiscated assets was disclosed on Friday. The list took into account the cash kept at diverse banking institutions as well as the assets stored at Binance (the top crypto exchange). The bankruptcy CEO of FTX, John Ray, replaced SBF after the bankruptcy filing of the crypto exchange. He is currently trying to get back the funds lost by the depositors of the platform during the crash that took place in 2022’s November.
In December, SBF was accused of 8 charges related to fraud and money laundering but pleaded not guilty to the allegations. A couple of prominent executives who were formerly collaborating with him cooperated with the authorities against SBF by entering plea contracts. These executives include Gary Wang (who formerly worked at FTX) and Caroline Ellison (the former CEO of Alameda Research).
Also read:Apart from that, the prosecutors confiscated approximately $6M worth of assets stored at Silvergate Bank-based accounts of SBF. They have also seized a $50M sum from the account based in Moonstone Bank. In the case of Binance.US and Binance crypto exchanges, the confiscated amounts were not disclosed. The assets in Robinhood shares equaled a $525M amount. These assets are disputed among FTX, SBF, and BlockFi (an insolvent crypto lender).
2 Anonymous Donors Fund SBF’s Bail Bond
In the previous month, SBF was detained due to allegations. After that, the court released him on a bail contract of $250M till the trial. The former FTX executive has denied being engaged in embezzling client funds. Recently, a report from Insider signified that a couple of anonymous individuals collected a minimum of $700,000 for the bail bond of SBF. $200,000 was given by one person while $500,000 was offered by the other in funding.
The court ordered to keep the names of the funding bodies a secret as the attorneys of SBF disclosed concerns regarding their safety. In his recent blog post, SBF asserted that approximately the entire worth of the accused’s Robinhood shares had been offered by him to be donated to his consumers. Nonetheless, as claimed by the federal authorities, the respective shares were bought with the cash stolen from the customers.
Back in 2022’s May, around 7.8% of the financial company Robinhood’s shares were purchased by SBF. In addition to this, he was the only director and owner of the stock obtained via Emergent Fidelity Technologies. In the meantime, the DOJ has started an investigation to trace the $370M worth of FTX assets which disappeared just hours following the bankruptcy filing by the crypto exchange.
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