News Update

Federal prosecutors seizes nearly $700 Mn in assets from FTX founder Sam Bankman-Fried

• ByStartupStory     |    January 21, 2023

According to a Friday court filing, federal prosecutors seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, primarily in the form of Robinhood stock.

Bankman-Fried has pleaded not guilty to fraud charges after being accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund. He is due to stand trial in October.

The Department of Justice announced the seizure of Robinhood shares earlier this month, but it released a more comprehensive list of seized assets on Friday, including cash held at various banks and assets deposited at cryptocurrency exchange Binance.

Bankman-Fried has pleaded not guilty to fraud charges after being accused of stealing billions of dollars from FTX customers to pay debts incurred by his crypto-focused hedge fund. He is due to stand trial in October.

The most recent asset seizure reported by the DOJ occurred on Thursday, when prosecutors seized $94.5 million in cash from a Silvergate Bank account associated with FTX Digital Markets, FTX’s Bahamas subsidiary. More than $7 million was seized by the DOJ from other Silvergate accounts linked to Bankman-Fried and FTX.

Previously, the DOJ seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small Washington state bank.

The most recent asset seizure reported by the DOJ occurred on Thursday, when prosecutors seized $94.5 million in cash from a Silvergate Bank account associated with FTX Digital Markets, FTX’s Bahamas subsidiary. More than $7 million was seized by the DOJ from other Silvergate accounts linked to Bankman-Fried and FTX.

Previously, the DOJ seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small Washington state bank.

 

 

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