US DOJ To Seize $456M Of SBF’s Robinhood Shares
US DOJ To Seize $456M Of SBF’s Robinhood Shares.
Following Sam Bankman-Fried’s hearing on Tuesday, it’s reported that the U.S. Federal government has seized or is currently in the process of seizing a large sum of shares linked to the collapsed crypto exchange FTX.
Seizing $456M
On Wednesday, U.S prosecutors had begun to take custody of the roughly 56 million Robinhood shares, worth around $465 million, following a long ownership dispute for the shares between bankrupt crypto lender BlockFi, Sam Bankman-Fried, and FTX creditor Yonathan Ben Shimon.
According to Department of Justice counsel Seth Shapiro, the shares in question were “not property in the bankruptcy estate” meaning that they don’t have to be frozen like most FTX assets currently are.
Sam Bankman-Fried and his co-founder Gary Wang "borrowed" $546 million from Alameda Research to buy 56 million shares of Robinhood earlier this year
So Alameda "borrowed" the money from FTX customers and handed it to Sam to make personal investments
— Genevieve Roch-Decter, CFA (@GRDecter) December 28, 2022
Related: SBF Pleads Not Guilty, Asks Judge To Shield Bond Signers’ Identities
How SBF Attained The Robinhood Shares
It was previously reported that both Sam Bankman-Fried and another former FTX executive, Gary Wang, had previously purchased about 7.42% of Robinhood’s stock using their other company’s name Emergent Fidelity Technologies using funds borrowed from SBF’s hedge fund Alameda Research.
SBF was said to have been loaned around $510 million while Wang was given around $35 million between April and May 2022.
“I borrowed the sum of $491,743,563.39, and Gary borrowed the sum of $54,638,173.71 from Alameda [Research]. All of the sums evidenced by the promissory notes were capitalized into Emergent as working capital so that it could purchase the shares in Robinhood.” SBF wrote in a court filing on December.
Related: SBF Borrowed $540M From Alameda To Purchase Robinhood Shares
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