In a hearing taking place today, prosecutors have stated that the U.S. Department of Justice is seizing Sam Bankman-Fried’s $575 million in Robinhood shares. The former FTX CEO had purchased the shares utilizing a loan from Alameda Research according to court documents. Subsequently, those are now set to be in the custody of American officials.
The purchase of the Robinhood shares was first reported in late December, with the reveal of several court documents. Those reports found that Bankman-Fried, alongside FTX co-founder Gary Wang, borrowed more than $546 million from Alameda by promissory note with the intention of purchasing the shares.
Bankman-Fried’s Robinhood Shares Siezed
Sam Bankman-Fried is in the midst of one of the highest-profile court cases of the year thus far. In a hearing taking place today, prosecutors have noted the current fate of the highly publicized Robinhood shares purchased by the former CEO using a loan from Alameda Research.
Prosecutors have stated that the U.S. Department of Justice is officially seizing Bankman-Fried’s $575 million in Robinhood shares. Moreover, this development occurred just a day after the former billionaire pleaded not guilty in the FTX fraud case.
Just a few weeks ago, it was revealed through an affidavit to a Caribbean court that Bankman-Fried and Gary Wang borrowed substantial funds from Alameda Research. Coindesk reported that the two “used that money to capitalize Emergent Fidelity Technologies LTD., the shell corporation that in May bought a 7.6% stake in Robinhood.”
Subsequently, there began a race to claim the 56 million Robinhood shares. BlockFi, a well-known crypto lender, alleged their rights to the shares following a deal made with Bankman-Fried in November. Their claim was the shares were used as collateral in a loan made by Alameda Research. Conclusively, that race has now seen its shares being seized by American officials.