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FTX's Sam Bankman Fried Loses $700 Million to U.S. Regulators

  • Federal officials seized $700 million in cash and Sam Bankman-assets, Fried's mostly Robinhood shares, according to court records.

  • Three FTX Digital Markets Silvergate Bank accounts were looted of about $6 million. On January 11, the U.S. government bought these Bahamian company properties.

21 Jan 2023 By : COIN GABBAR
FTX's Sam Bankman Fr

According to court documents, federal agents seized $700 million in cash as well as assets connected to Sam Bankman-Fried, the majority of which were Robinhood shares.

Federal investigators have seized more than $697 million in cash and assets linked to Sam Bankman-Fried, according to documents submitted in court on Friday. The majority of these assets were held by the FTX founder in the form of shares in Robinhood. Robinhood was at the time a "attractive investment," according to Bankman-May Fried's disclosure that he had purchased a 7.6% share in the company.

SBF Assets Worth $700 Million Seized

A contentious legal fight involving several parties, including claims from the Caribbean, agents of the now-defunct cryptocurrency lender BlockFi, Bankman-Fried himself, and the head of FTX's bankruptcy proceedings, is centred on the 55 million or more Robinhood shares. According to federal prosecutors, the funds used to buy these Robinhood shares were allegedly taken from FTX consumers.

Three Silvergate Bank accounts with the name FTX Digital Markets were robbed of more than $6 million. The U.S. government later purchased these properties, which were earlier owned by a Bahamian business, on January 11. According to a recent analysis by Silvergate, the FTX collapse cost the company $1 billion in the fourth quarter of 2022. Additionally, the court petition stated that Moonstone Bank, a financial institution in the United States with connections to the FTX administration, had around $50 million in its possession.

Binance Accounts for SBF

The combined value of the money and assets kept in two Binance accounts in contrast to one Binance account

Federal prosecutors did not reveal US accounts. The only items that had been confiscated that had no monetary value attached to them were these three Binance wallets.

Following Bankman-resignation, Fried's John J. Ray III became the new CEO of FTX. He is now concentrating on the company's restructuring and trying to get back the money that the firm's depositors lost. After being arrested in December on suspicion of criminal fraud, the 30-year-old Bankman-Fried is now under house arrest after posting a $250 million bail. SBF has entered a not guilty plea and is presently in custody while waiting for his trial, which is set to begin on October 2nd.