US Authorities Seizes Robinhood Shares Linked to FTX Founder Sam Bankman-Fried – Regulation Bitcoin Information
The U.S. Division of Justice (DOJ) is within the technique of seizing Robinhood shares, price about $460 million, which are linked to former FTX CEO Sam Bankman-Fried (SBF). “We imagine that these belongings should not property of the chapter property or that they fall inside the exceptions … of chapter code,” a DOJ legal professional instructed the decide overseeing the FTX chapter case.
DOJ Seizing Robinhood Shares Linked to FTX
The U.S. authorities is within the technique of seizing 56 million shares of Robinhood Markets Inc. (Nasdaq: HOOD), price about $460 million, which are linked to the disgraced FTX founder Sam Bankman-Fried (SBF), mentioned Seth Shapiro, an legal professional with the U.S. Division of Justice (DOJ) at an FTX chapter court docket listening to in Delaware Wednesday.
Shapiro instructed Decide John Dorsey, who oversees the FTX chapter case:
We imagine that these belongings should not property of the chapter property or that they fall inside the exceptions … of chapter code.
In response to Robinhood’s submitting with the Securities and Change Fee (SEC) in Might final 12 months, Emergent Constancy Applied sciences took a 7.6% stake in Robinhood, and Bankman-Fried was its sole director and majority proprietor.
Following the FTX chapter submitting, the possession of the Robinhood shares is disputed by the brand new FTX administration, Bankman-Fried, a person FTX creditor, and crypto lender Blockfi which additionally filed for chapter in November final 12 months.
As a result of a number of events laying claims to the Robinhood shares, the brand new FTX administration has filed a movement to the Delaware chapter court docket to maintain the belongings frozen till the court docket “can resolve the problems in a way that’s honest to all collectors of the debtors.”
FTX lawyer James Bromley mentioned throughout Wednesday’s listening to: “The query as to the possession of these Robinhood shares was an open query earlier than the seizure came about.” He added:
We actually imagine we’ve got rights with respect to these belongings … We’re in alignment nowadays with the U.S. authorities and the legislation enforcement officers in taking these steps.
Bromley pressured that the Robinhood shares being seized by Federal prosecutors are from accounts that aren’t at the moment underneath the direct management of the bankrupt FTX.
The DOJ and a number of U.S. regulators, together with the SEC, have charged Bankman-Fried with a number of counts of fraud. Nonetheless, the previous FTX CEO has pleaded not responsible to all expenses.
What do you concentrate on the DOJ seizing Robinhood shares linked to FTX and Sam Bankman-Fried? Tell us within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It’s not a direct provide or solicitation of a suggestion to purchase or promote, or a advice or endorsement of any merchandise, providers, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, straight or not directly, for any harm or loss precipitated or alleged to be attributable to or in reference to using or reliance on any content material, items or providers talked about on this article.