In a Delaware bankruptcy court proceeding, the US Justice Department declared that it had captured custodial rights of $450 million in Robinhood shares from FTX.
The procurement of Robinhood shares was first disclosed in late December when several court records were released publicly. Based on those reports, Bankman-Fried and FTX co-founder Gary Wang loaned more than $546 million from Alameda via a negotiable instrument to buy the shares.
Robinhood shares owned by Bankman-Fried have been seized
Sam Bankman-Fried is involved in one of the year’s most high-profile legal battles. Investigators have noted the current outcome of the heavily publicized Robinhood shares bought by the former CEO by using an Alameda Research line of credit in a court hearing.
According to prosecutors, the US Department of Justice has officially captured Bankman-$575 Fried’s million in Robinhood shares. Moreover, this took place just one day after the former billionaire pled not guilty to the FTX corruption scandal. BlockFi, FTX, and Antigua liquidators have all claimed ownership of the Robinhood stock, concerning Bankman-Fried.
Bankman-Fried pleaded not guilty
Bankman-Fried has pleaded not guilty to scam and conspiracy charges. He conceded to missteps in financial planning at FTX but noted that he did not consider he was criminally responsible.
According to a court document filed in an Antigua court back in December, Bankman-Fried bought approximately 7.42% of Robinhood’s shares via Emergent Fidelity Technologies Ltd with borrowed funds from Alameda Research.
Bankman-Fried claimed ownership of 90% of Emergent, with Gary Wang, another former FTX executive, acquiring 10%. Wang has pleaded guilty to corruption allegations arising from the FTX scandal and is complying with law enforcement agencies.