Sam Bankman-Fried Might Lose Robinhood Assets To FTX Debtors

Within the newest replace, Sam Bankman-Fried (SBF), former CEO of a bankrupt crypto trade FTX, requests the court docket to dam debtors’ entry to his Robinhood shares. A report announced by US prosecutors revealed the Robinhood shares are value $450 million.

SBF has been beneath home arrest since his apprehension by the Royal Bahamas Police Pressure after the U.S. filed prison costs towards him. All these happened in December 2022, weeks after the crash of his crypto trade, leaving many with a number of losses.

Division of Justice Set To Seize SBF’s Robinhood Shares

FTX Alternate and Alameda Analysis at the moment are beneath the management of liquidators assigned by the court docket. The liquidators are searching for any obtainable belongings to repay FTX debtors.

In a earlier court docket listening to, a US Division of Justice prosecutor declared their intention to seize SBF’s’ shares value $450 million. In the meantime, the subsequent listening to will reveal what the Division of Justice will do with the Robinhood shares.

Sam Bankman-Fried filed a motion to america Chapter Courtroom in Delaware opposing the enforcement of management over his shares. Within the court docket submitting, he claims the Robinhood shares don’t have anything to do with any FTX-affiliated companies.

In a Thursday submitting, SBF’s’ legal professionals argued that their shopper requires cash to pay his authorized charges and bills.

Sam Bankman-Fried And Historical past With Robinhood Shares

In the meantime, many companies with appreciable publicity to the now-bankrupt trade are going through the domino impact of the crash. For instance, Genesis Buying and selling can also be battling the aftermath of the FTX disaster. Additionally, crypto lending agency BlockFi has filed for bankruptcy and seeks to say the Robinhood shares.

BlockFi claimed Sam Bankman-Fried promised to bail them out with a mortgage of $600 million, which he would acquire utilizing the Robinhood shares as collateral. The ex-CEO signed agreements for BlockFi’s’ bailout of $240 million in July 2022. So BlockFi had important publicity to FTX when the disaster occurred and needed to file for chapter.

Earlier than BlockFi’s’ chapter, FTX customers filed a class action lawsuit towards Sam Bankman-Fried and FTX trade. Within the class motion lawsuit, they claimed they’ve rights over all remaining belongings of FTX. A category motion lawsuit is when a plaintiff sues a defendant on behalf of a bunch or events who wouldn’t be current within the court docket.

Notably, the embattled crypto trade, FTX, revealed that it has over a million collectors in its chapter submitting. Reviews additionally advised that FTX and Sam Bankman-Fried are beneath investigation by regulation enforcement and regulatory businesses. A number of notable celebrities misplaced important sums of funding within the FTX fiasco; Tom Brady is amongst many traders in FTX.

FTT token tanks by 2.45% on the every day chart l FTTUSDT on

In the meantime, because the FTX collapse, FTT, the trade’s native token, has declined over 75% and is at present buying and selling at $0.916. FTT worth has dropped by 2.45% within the final 24 hours.

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