The US government has seized – or is in the process of seizing – hundreds of millions of dollars in Robinhood Markets shares as part of a fraud case against Sam Bankman-Fried, the founder of failed crypto firm FTX, lawyers said in court on Wednesday.
The government is also taking control of assets in bank accounts that are part of a bankruptcy case involving one unit of the FTX empire in the Bahamas, said James Bromley, a lawyer leading the main FTX insolvency process in the US.
The seizure was initiated as part of a fraud case against Bankman-Fried and other top FTX officials.
The shares, now worth more than $460 million, have been claimed by various creditors of FTX, who have filed court cases to try to gain control. A court hearing will finally be held to determine what happens to the shares and assets seized from the bank account, Seth B. Shapiro, a lawyer with the US Department of Justice said during a court hearing held by video in Wilmington, Delaware.
Bankman-Fried was extradited from the Bahamas last month to face fraud charges in the US.
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