Bullet Points:
• The U.S. government is attempting to seize nearly $700 million of assets from former FTX CEO Sam Bankman-Fried.
• Included in the assets is over 55 million Robinhood Markets (HOOD) shares worth about $525 million.
• Officials are also moving to claim $171 million in cash from a series of bank accounts linked to Bankman-Fried’s web of companies.
The U.S. government is attempting to take control of an estimated $700 million of assets it seized earlier this month from former FTX CEO Sam Bankman-Fried. The property includes over 55 million Robinhood Markets (HOOD) shares worth approximately $525 million, purchased with borrowed Alameda money, as well as $171 million in cash from a series of bank accounts linked to Bankman-Fried’s web of companies.
The government filed a bill of particulars on Friday in Bankman-Fried’s criminal case to officially move forward with the forfeiture. A government lawyer previously informed the judge that these assets are “not property in the bankruptcy estate” or are subject to exemptions, meaning they don’t have to be frozen like most FTX assets are, pending wind-up.
The U.S. has accused Bankman-Fried of a series of financial crimes, including securities fraud and money laundering. He is currently out on bail and has pled not guilty to all charges. The government’s seizure of his personal assets is seen as an attempt to pressure him into a plea deal.
The asset seizure has caused a stir both in the financial world and in the crypto community. Bankman-Fried is a prominent figure in the crypto industry, having founded the popular derivatives exchange FTX, and his case is being closely watched. Additionally, the seizure of Bankman-Fried’s assets has raised questions about the ability of the U.S. government to seize property from other crypto entrepreneurs.
The $700 million asset seizure is the biggest of its kind in the crypto industry and is likely to have a lasting effect on the industry. It remains to be seen whether the U.S. is successful in claiming the assets and how the case will play out in the long run. For now, Bankman-Fried and his lawyers are fighting the forfeiture in court, and the case is ongoing.