Key Takeaways
- The DOJ has seized over 55 million Robinhood shares and $20.7 million belonging to Emergent Constancy Applied sciences.
- Whereas the holding firm isn’t a part of the FTX property, the DOJ believes it was funded by Bankman-Fried with misappropriated buyer cash.
- Bankman-Fried had beforehand fought to maintain the shares in his management so as to pay for his authorized charges.
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Regardless of Sam Bankman-Fried’s greatest efforts, the DOJ has determined to grab the Robinhood shares the FTX whiz child purchased by way of Emergent Constancy Applied sciences.
$490 Million Seized
Two months after FTX’s collapse, authorities are nonetheless busy seizing property associated in a technique or one other to the defunct crypto change.
In response to a court docket submitting dated January 6, the Division of Justice has seized 55,273,469 shares of Robinhood inventory belonging to FTX founder Sam Bankman-Fried by way of a holding firm, Emergent Constancy Applied sciences. On the time of writing, the shares are value greater than $469 million. The doc signifies that the DOJ seized an extra $20.7 million from Emergent Constancy Applied sciences from an account at ED&F Man Capital Markets.
The DOJ stated the property had been seized as a result of that they had been purchased by Bankman-Fried with misappropriated funds. In response to the submitting, Bankman-Fried’s property represent property concerned in cash laundering and wire fraud.
One other court docket doc filed by FTX (beneath John Ray and the liquidation staff) on December 22 claims that Emergent Constancy Applied sciences is a special-purpose holding firm that had no different enterprise besides holding that inventory. The corporate is reportedly 90% owned by Bankman-Fried.
Whereas the DOJ acknowledged that FTX debtor BlockFi had expressed an curiosity in being handed over the property, it identified that Emergent Constancy Applied sciences was not a part of the FTX property and subsequently not concerned within the chapter proceedings but.
The $490 million seizure is one other blow to Bankman-Fried, who had petitioned to maintain management of Emergent Constancy Applied sciences. He claimed he needed to make use of the Robinhood shares to pay for his authorized charges.
Bankman-Fried beforehand secured a $250 million bail package deal that requires him to remain at residence together with his dad and mom of their home in Palo Alto.
Disclaimer: On the time of writing, the writer of this piece owned BTC, ETH, and a number of other different crypto property.
