As part of its case against the crypto exchange, the United States Departure of Justice reportedly seized or was about to seize more than $400m worth of Robinhood shares that were linked to FTX.
According to Reuters’ Jan. 4, report, U.S. officials told a judge they were in the process of seizing assets tied to FTX and its former CEO, Sam Bankman-Fried, which included 56 million shares of Robinhood — worth roughly $468 million at the time of publication. The report comes a day after a judge in the criminal case against SBF ordered him not to access or transfer any cryptocurrency or assets from FTX or Alameda.
Amid FTX’s bankruptcy proceedings, control of the Robinhood shares has been under contention as many investors and creditors look to be made whole. BlockFi, Bankman-Fried, and Yonathan Ben Shimon, a FTX creditor have all claimed the assets.
Bankman-Fried pleaded guilty to eight criminal charges, including wire fraud, securities fraud, and violating campaign finance laws, in federal court on Jan. 3. He said he was no longer able to access the wallets because he had stepped down as CEO in November, and also denied moving funds from Alameda.
Related: SBF’s case could have an impact on how the IRS handles your FTX losses
The former FTX CEO has been under house arrest at his parent’s home in California since December but has been allowed to travel for approved reasons, including showing up for court in New York. His trial date was set for October 2.