US justice seizes $700 million in assets belonging to Sam Bankman-Fried

We learn following the publication of a legal document filed on January 20 with a New York court, that US federal authorities have seized $700 million in assets belonging to Sam Bankman-Fried. These funds include 56 million Robinhood shares, cash and accounts held at Binance.

SBF sees its assets seized by American justice

According to information revealed by our colleagues at CNBC, US federal prosecutors reportedly seized approximately $700 million in assets belonging to Sam Bankman-Friedthe former CEO of bankrupt exchange FTX.

According to documents filed with the court for the Southern District of New York, publicly available, the majority of the funds involved here would be in the form of Robinhood shares. These are at the heart of a conflict pitting SBF against cryptocurrency lender BlockFi as well as the new management of FTX.

The latter all claim ownership of these approximately 56 million shares which were previously stored with the broker ED&F Capital Markets. At the current HOOD stock price, the total value of the loot amassed by federal prosecutors for this purpose is approximately $533 million.

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The American justice supported the seizure of the assets by alleging that these actions had been obtained thanks to the funds stolen from the customers of the exchange. Sam Bankman-Fried, who pleaded not guilty to the 8 charges against him, denies using client funds for illegal purposes.

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Other assets seized here and there

According to the document filed on January 20, a certain amount of other assets may have been seized. The nearly $700 million seized here is scattered around in the form of cryptocurrencies, cash and stocks.

As we can see in paragraph b, more than 20 million dollars were seized within the broker ED&F Capital Markets as Emergent Fidelity Technologiesan Antiguan company majority-owned by SBF, which also owned the previously listed Robinhood shares.

$50 million were seized from an account denominated in the name of FTX Digital Markets, a Bahamian subsidiary of FTX, within Moonstone Bank.

The latter may have had a close relationship with the empire built by Sam Bankman-Fried, since she had received approximately $11.5 million from Alameda Research in January 2022. However, the latter very recently issued a statement indicating that it was abandoning the crypto space following the collapse of FTX.

Seized court document

Preview of the court document regarding the seizure of the assets of Sam Bankman-Fried

Moreover, approximately $100 million was seized on different accounts belonging to FTX Digital Markets in the vaults of the Silvergate Bank. This crypto-bank was also very affected by the collapse of FTX, since it recently revealed a net loss of $1 billion for the last quarter of 2022.

3 accounts hosted on the Binance cryptocurrency exchange platform were also seized by the courts, but the amounts held there were not disclosed in the document.

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Source : CNBC

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US justice seizes $700 million in assets belonging to Sam Bankman-Fried

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