Regulators Seize Millions in Robinhood Shares From FTX

Regulators are seizing Millions of Robinhood shares from FTX.
The seizures are tied to the eight-count criminal indictment against SBF.
Katharine Parker ordered the seizure of money that an FTX storing in accounts at Silvergate Capital Corp.

A prosecutor from the Justice Department announced on Wednesday that federal authorities are in the process of seizing more than $400 million worth of Robinhood Markets shares that are tied to the bankrupt cryptocurrency firm FTX.

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This is part of an effort to gain possession of assets the company still holds after it was alleged that it blew through billions of dollars in customer money.

The seizures are tied to the eight-count criminal indictment that the Justice Department issued against former FTX director Sam Bankman-Fried. On Tuesday, Bankman-Fried appeared in federal court in Manhattan and pleaded not guilty to the accusations against him.

According to Fortune, prosecutor Seth Shapiro said at a hearing that the government is in the process of acquiring possession of the shares while simultaneously seizing assets from bank accounts owned by FTX in the Bahamas.

“We either believe these assets aren’t the property of the bankruptcy estate,” or fall under some bankruptcy code exception, Mr. Shapiro told Judge John Dorsey on Wednesday in the U.S. Bankruptcy Court in Wilmington, Del.

Separately, a federal magistrate judge in New York named Katharine Parker issued an order in December for the seizure of money that an FTX unit had been storing in accounts at Silvergate Capital Corp., according to a document that was filed in court on Wednesday. According to a previous court filing, the sum was around $93 million.

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Godfrey Mwirigi

Godfrey Mwirigi is an enthusiastic crypto writer with an interest in Bitcoin, blockchain, and technical analysis. With a focus on daily market analysis, his research helps traders and investors alike. His particular interest in digital wallets and blockchain aids his audience in their day-to-day endeavors.