The US government is looking to seize Robinhood shares linked to Sam Bankman-Fried aka SBF, who is accused of fraud in connection with the demise of the FTX cryptocurrency exchange.
According to US attorney Seth Shapiro, the US DoJ does not think the 56 million shares of Robinhood, valued at around $465 million, belonged to the bankruptcy estate.
At the Delaware virtual court session, Shapiro stated to U.S. Bankruptcy Judge John Dorsey that conflicting claims to shares of Robinhood might be resolved in a forfeiture procedure.
Amongst BlockFi, Sam Bankman-Fried, and FTX creditor Yonathan Ben Shimon, ownership of the Robinhood shares is disputed.
Also Read: BlockFi sues FTX’s Bankman-Fried over Shares in Robinhood
Shapiro added that prosecutors had frozen U.S. bank accounts connected to FTX Digital Markets. According to court documents, accounts at Farmington State Bank, and Silvergate Bank had around $143 million.
FTX attorney James Bromley informed Dorsey that none of the assets up for seizure are now under the direct control of any of the FTX entities involved in the Chapter 11 bankruptcy case.
Also Read: SBF Borrowed $546M from Alameda to buy Robinhood Shares
Shapiro claimed since the assets are not a part of FTX’s bankruptcy estate, they do not need to be frozen like the company’s other assets.
The attorney stated that additional assets were being seized and that forfeiture proceedings could result in greater control over both the Robinhood shares and additional assets of FTX.
