The United States Department of Justice has reportedly seized or is in the process of seizing more than $400 million in Robinhood shares linked to FTX as part of a case against the crypto exchange.
According to a January 4 report from Reuters, US officials told a judge that they were in the process of seizing assets tied to FTX and former CEO Sam Bankman-Fried, which included 56 million Robinhood shares – worth about $468 million at the time. from publication. The report follows a judge in a criminal case ordering SBF not to access or transfer cryptocurrency or assets from FTX or Alameda.
In the midst of FTX’s bankruptcy proceedings, control of Robinhood’s stock has become a point of contention as many investors and creditors look set to end it. BlockFi, Bankman-Fried and FTX creditor Yonathan Ben Shimon have all staked claims to the asset.
In federal court on January 3, Bankman-Fried pleaded not guilty to eight criminal counts including wire fraud, securities fraud and campaign finance violations. He also previously denied moving funds from Alameda, saying he has not had access to the purse since stepping down as CEO in November.
related: The outcome of the SBF lawsuit may determine how the IRS treats your FTX loss
The former FTX CEO has been under house arrest at his parents’ home in California since December but has been allowed to travel for approved reasons, including appearing in court in New York. A trial date has been set for October 2.