US government confiscates Robinhood shares in connection with FTX founder Sam Bankman-Fried-Regulation
US government confiscates Robinhood shares in connection with FTX founder Sam Bankman-Fried-Regulation
The US Justice Ministry (DOJ) is in the process of confiscating Robinhood shares worth around $ 460 million that are connected to the former FTX CEO Sam Bankman-Fried (SBF). "We believe that these assets are not the property of the bankruptcy estate or that they fall under the exceptions ... of the insolvency law," a lawyer of the Doj told the judge who supervised the FTX bankruptcy case.
doj confiscated with FTX connected Robinhood shares
The US government is to confiscate 56 million shares of Robinhood Markets Inc. (Nasdaq: Hood) worth around $ 460 million, which are associated with the Ungnade FTX founder Sam Bankman-Fried (SBF), said lawyer Seth Shapiro with the US Ministry Wednesday in Delaware.
Shapiro told judge John Dorsey, who monitored FTX's bankruptcy case:
We believe that these assets are not the property of the bankruptcy estate or that they fall under the exceptions ... of the insolvency law.
According to the submission of Robinhood at the Securities and Exchange Commission (SEC) in May last year, Emergent Fidelity Technologies a share of 7.6 % in Robinhood, and Bankman-Fried was The only director and majority owner.
After the FTX insolvency application, ownership of the Robinhood shares is denied by the new FTX management, Bankman-Fried, a single FTX believer, and the crypto loan blockfi bankruptcy registered in November last year.
Since several parties claim the Robinhood shares, the new FTX management has applied for the insolvency court of Delaware to have the assets frozen until the court can "solve problems in a way that meets all creditors of the debtor."
FTX lawyer James Bromley said during the hearing on Wednesday: "The question of ownership of these Robinhood shares was an open question before the confiscation took place." He added:
We definitely believe that we have rights in relation to these assets ... We currently agree with the US government and law enforcement officers if we take these steps.
Bromley emphasized that the Robinhood shares confiscated by the Federal Prosecutor's office come from accounts that are currently not under the direct control of the bankrupt FTX.
The DoJ and several US regulatory authorities, including the SEC, did this Calculated Bankman-Fried with several fraud cases. However, the former FTX CEO guilty to all fees.
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