The Department of Justice seized 55.27M Robinhood shares and $20.74M from an account in ED&F Man Capital Markets Inc linked to FTX.
The United States Department of Justice has notified a Bankruptcy Court of its recent asset seizures linked to the bankrupt cryptocurrency exchange FTX.
In a recent court filing, the Justice Department said it seized a total of 55,273,469 Robinhood shares linked to the collapsed exchange, worth about $456 million at Friday’s closing price.
Furthermore, the U.S. Department of Justice also disclosed that it seized another $20.74 million from an account in ED&F Man Capital Markets Inc., the brokerage where the shares are parked.
According to the Department of Justice, the development comes pursuant to judicially authorized seizure warrants issued in the Southern District of New York. The Department of Justice noted that the seized assets constitute properties involving proceeds from wire fraud and violations of the country’s money laundering.
It is noteworthy that the seized assets could be subject to forfeiture proceedings. Notably, the ownership of the asset is disputed among SBF, FTX creditor Yonathan Ben Shimon, and bankrupt crypto lender BlockFi. Last year, FTX asked a U.S. bankruptcy court to weigh in on the ownership of the seized assets.