Federal authorities confiscated assets worth approximately $700 million belonging to FTX founder Sam Bankman-Fried, including three accounts at Silvergate Bank containing US dollars.
According to a court document dated Friday, Jan. 20, 2023, federal prosecutors seized approximately $525 million worth of Robinhood stock, $94.5 million in cash from a Silvergate Bank account, more than $7 million from d other Silvergate accounts, nearly $50 million in a Moonstone Bank account and assets in three Binance accounts.
The US Department of Justice revealed the seizure of 56 million shares of Robinhood earlier this month. These shares are held by Sam Bankman-Fried and FTX co-founder Gary Wang through Emergent holding company Fidelity Technologies, and were purchased with a loan from his own hedge fund, Alameda Research.
The shares have been the subject of litigation between multiple parties, with a total of four entities claiming the shares. Bankrupt cryptocurrency lender BlockFi, a creditor of FTX, FTX's new management, which is trying to recover funds for investors and clients of the bankrupt platform, and the US government want to keep access to the shares.
Sam Bankman-Fried himself also had rights to these shares. SBF's attorneys argued that the shares were held by a holding company that is not an entity related to FTX. They also said SBF needed the money to fund its legal fees.
Another $101.5 million of the seized assets were held in Silvergate Bank accounts in the name of FTX Digital Markets, a Bahamian subsidiary. These assets were seized by the government “on or around January 11,” the crypto bank said earlier this month.
Silvergate also revealed that it suffered a bank run following the collapse of FTX, which forced the company to sell assets at a significant loss in order to meet $8.1 billion in customer withdrawals. The crypto bank suffered a loss of $718 million on this sale.
The US Department of Justice (DOJ) seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a digital bank with ties to FTX management. Just yesterday, the bank announced that it was retiring from the crypto space and refocusing on the role of "community banking" citing recent developments in the sector.
Finally, the DOJ seized an undisclosed amount of assets held in a Binance account and two Binance.US account numbers.
US prosecutors have charged SBF with eight criminal counts, including wire fraud and conspiracy to embezzle client funds. The former CEO has pleaded not guilty to all charges.
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