Ownership of Robinhood shares is a disputed issue between Bankman-Fried and BlockFi. Meanwhile, the former FTX lawyer confessed that he cooperated with US prosecutors.
- US Department of Justice seizes Robinhood shares linked to FTX
- The shares have a value of USD $450 million
- Stock ownership is still an open question
- Sam Bankman-Fried, BlockFi and a third party dispute ownership of those shares
- Former FTX lawyer would have cooperated with US prosecutors
The United States federal government is moving to seize hundreds of millions of dollars in assets allegedly tied to the failing cryptocurrency exchange, FTX.
The US Department of Justice (DOJ) is reportedly in the process of seizing a number of assets, including shares of Robinhood valued at USD $450 million, revealed the lawyer for said federal agency, Seth Shapiro, during a bankruptcy court hearing in Delaware on Wednesday.
Shapiro, DOJ’s senior trial attorney, said the agency does not believe the shares are owned by a bankrupt estate and seek to determine your ownership in a forfeiture proceeding, based on coverage of Discard. He added that they would also be linked to a separate bankruptcy case filed by the crypto lender. BlockFi.
“We wanted the court to know about those seizures”, commented the lawyer, citing The Block. “Either we believe that these assets are not owned by the bankruptcy estate, or that they fall within the exceptions… of the bankruptcy code”.
Shapiro indicated that the assets in the process of being seized come from from various banks, including Silvergatea moneylender closely linked to FTXhe mentioned, according to the coverage of CoinDesk. Seized assets will be subject to futures criminal or civil proceedings for the confiscation of assets, a process to prevent criminals from benefiting from the proceeds of crime, explains that medium.
Ownership of shares Robinhood is uncertain
For his part, James Bromley, the lawyer for the troubled cryptocurrency exchange, added that the assets seized from Robinhood come from accounts that debtors of FTX do not control, as reported The Block. He stressed that share ownership has been an uncertain matter even since before the seizure began, noting ongoing proceedings in Antigua and Barbuda that are tied to assets.
It should be noted that Bankman-Fried and co-founder Gary Wang formed a partnership of briefcase in may 2022 call Emergent Fidelity Technologies Ltd. for acquire 56 million shares of Robinhood worth USD $546 million, as recalled Discard. top executives they would have borrowed funds from the sister firm, Alameda Research(formerly a reputable brokerage fund), to acquire the shares, according to previous reports.
Ownership of the shares in question has been in dispute between the bankrupt crypto lender BlockFithe co-founder and former CEO of FTXSam Bankman-Fried, y creditor Yonathan Ben Shimon. the three parts have filed lawsuits in an attempt to gain control of the shares.
The lawyers of FTX they had applied at the end of December that the shares remain frozen while legal proceedings continue.
Bankman-Fried, who is currently facing a criminal case against him in the US, has been charged with various charges, including bank and wire fraud, money laundering, and conspiracy. On Tuesday of this week, the formerly renowned cryptocurrency entrepreneur pleaded not guilty before the charges against him from the Department of Justice.
Lawyer of FTX collaborated with prosecutors
Meanwhile, in other recent news surrounding the saga of FTXa recent report from Reuters discovered that the former lawyer for the exchange, Daniel Friedberg, had cooperated with US prosecutors by providing them with information about the case.
According to the report, which cited a person familiar, Friedberg disclosed to DOJ, Federal Bureau of Investigation (FBI) and Securities and Exchange Commission (SEC) officials what he knew about Bankman-Fried’s use of client funds. He also provided information on the operations of Alameda Researchsaid the source.
FBI agents contacted Friedberg a few days after the cryptocurrency exchange filed for Chapter 11 bankruptcy protection in November, according to Reuters. The attorney is not under criminal investigation and hopes to be a witness in Bankman-Fried’s trial, which is scheduled for October.
Bankman-Fried is accused of embezzling billions of dollars in client funds from FTX and channel them towards Alameda. Contrary to his plea of not guilty, his former associates, the former executive director of Alameda ResearchCaroline Ellison, and former CTO of FTXGary Wang, have declared guilty of fraud charges.
Article by Hannah Estefanía Pérez / DailyBitcoin
Picture of Depositphotos
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