• The US government is seeking forfeiture of nearly $700 million in assets seized from former FTX CEO Sam Bankman-Fried.
• The assets include over 55 million Robinhood Markets shares worth $525 million and $171 million in cash from bank accounts.
• The government is seeking to take control of the assets, which it believes are not part of the FTX bankruptcy estate or subject to exemptions.
The United States government is taking action to seize nearly $700 million in assets belonging to former FTX CEO Sam Bankman-Fried. The assets in question, which were seized earlier this month, include over 55 million Robinhood Markets (HOOD) shares worth approximately $525 million and $171 million in cash from a series of bank accounts linked to Bankman-Fried’s web of companies.
The government is now seeking to take control of these assets, which it believes are not part of the FTX bankruptcy estate or subject to exemptions. This was revealed in a bill of particulars filed late Friday in Bankman-Fried’s criminal case. The bill of particulars states that the government believes that the assets it has seized „are not property in the bankruptcy estate“ or are exempt from freezing, meaning they do not have to be frozen like most FTX assets are pending wind-up.
The assets being sought by the government include over 55 million shares of Robinhood Markets, which were purchased with borrowed funds from Alameda. This was at the center of a fight involving Bankman-Fried, FTX Group and BlockFi. In addition to these shares, the government is also seeking $171 million in cash from a series of bank accounts linked to Bankman-Fried’s web of companies.
The case against Bankman-Fried has been ongoing since January, when the US government first seized the assets. The case is currently in the process of being heard in federal court and Bankman-Fried has already been arraigned and had his bail hearings. The government’s filing of the bill of particulars is the latest step in the process of seeking forfeiture of the assets.
If the government is successful in its effort to take control of the assets, it could have far-reaching implications for Bankman-Fried and FTX. The US government’s action could also have implications for crypto more generally, as it could set a precedent for future cases involving crypto assets. The case is ongoing and it remains to be seen how it will ultimately play out.