US Justice Department Retained Control of 56 Million Disputed Shares of Infamous Robinhood Stock worth approximately $500 million.
In a court document dated January 6, 2022, Justice Department Notifies BlockFi Bankruptcy Court That It Seized 55,273,469 Robinhood Shares, worth more than $450 million at press time. These shares were held in a brokerage firm account ED&F Men.
‘The seized assets constitute assets involved in violations’ of laundering and may have been the product of violations of electronic fraudthe US Department of Justice said.
The shares are owned by Sam Bankman-Fried and FTX co-founder Gary Wangthrough a named holding company Emerging loyalty technologies and were purchased with a loan from your hedge fund, Research Alameda.
Last week, Bankman-Fried, the founder of FTX, filed a lawsuit asking to do soprevent debtors from taking control of these shares.
This decision was made after four entities claimed the shares. Bankrupt crypto lender BlockFi, creditor of FTX, FTX’s new management, which is trying to recover funds for investors, customers of the failed platform, as well as the US government would like to keep its hands on the shares.
SBF’s lawyers supported this the shares were held by a holding company that was not a related entity to FTX. “FTX’s debtors seek to ignore the existence of a separate company unrelated to this action and pledge hundreds of millions of dollars in assets over which they have no legal claim,” they said.
SBF’s lawyers also said the former CEO needed money to do so finance your own legal expenses.
Extract from the request:
“The equity balance weighs in favor of refusing to execute or extend the stay. Emergent’s disposition of this property will make it inaccessible to Mr. Bankman-Fried, who is currently facing a potential criminal liability. Mr. Bankman-Fried needs some of those funds to pay for his criminal defense.”
SBF was arrested in the Bahamas in December 2022 after US prosecutors formally filed criminal charges against him. Eventually he was extradited to the United States, where he was released from prison after posting $250 million bail in a New York court.
The Southern District of New York accused SBF of eight billsincluding wire fraud and conspiracy to misappropriate client funds. Separately, SEC accused SBF of ‘orchestrating scheme to defraud investors in FTX stock’.
“The charges stem from an alleged wide-ranging scheme by the defendant to misappropriate billions of dollars of client funds deposited on FTX, the cryptocurrency exchange founded by SBF,” the US Justice Department said. in court.
Follow our affiliate links:
- To buy cryptocurrencies in the SEPA zone, in Europe and French citizensvisit Coinhouse
- To buy cryptocurrency in Canada visit bitbuy
- To protect or store your cryptocurrenciesget a Ledger wallet
- To trade your cryptocurrencies anonymouslyinstall the NordVPN app
To accumulate coins during the game:
- In poker on the CoinPoker gaming platform
- To a global fantasy football on the Sorare platform
Stay informed through our social networks: