Government Of United States Seizes Several Hundred Millions Worth Of Assets From FTX’s Co-Founder

The US Government has reportedly seized a tremendous number of assets worth several hundred million dollars belonging to Sam Bankman-Fried

Apart from the assets belonging to the former CEO of FTX, the US Government has seized shares of Robinhood that were owned by FTX.

The Government Seized Almost $700 Million worth of Funds

As per the latest reports, the government of the United States has seized almost $700 million worth of assets belonging to the notorious Sam Bankman-Fried.

The FTX exchange even owned a large number of shares at Robinhood, a mobile-based crypto trading application.

As per the latest documentation that has come from the court, those shares have been seized as well. According to estimates, the FTX brand owned 56,273,269 shares of Robinhood.

Given the current share price of Robinhood Market Inc. the mentioned number of shares owned by FTX translates to over $526 million.

Funds Held in Banks were Seized as well

The court even ordered that the funds belonging to SBF in different banks must be seized as well. Several reporters had been covering the entire case involving Sam Bankman-Fried.

They have revealed that most of the funds seized by the court in the banks belong to the Moonstone Bank and the Silvergate Bank.

In total, the court has seized a total of $56 million worth of funds from four accounts opened in different banks.

SBF reportedly had three bank accounts at the Silvergate Bank worth $6 million. One account belonging to SBF is in the Moonstone Bank which currently holds $50 million.

In total, the government of the United States has seized around $171 million from Sam Bankman-Fried while the rest has been seized from the FTX brand.

Since the order, the mentioned amount of funds has been taken into custody by the federal government of the United States.

Due to the latest developments, even the Moonstone Bank has decided that it is going to exit the cryptocurrency market.

It no longer wants to pursue its future in the crypto industry and it will be going back to its roots aiming to become the domestic bank.

The situation of Moonstone Bank

According to information, Alameda Research, the crypto trading platform, and sister company to FTX had invested over $11 million into Moonstone Bank.

It was done to move the Moonstone Bank from a traditional and rural banking firm to a cryptocurrency trading firm.

This was going to be a complete change for the Moonstone Bank, which was previously known as Farmington State Bank. The executives were very excited about the change and wanted to be part of it.

However, as Alameda Research filed for bankruptcy in November 2022 and the crypto situation has continued getting worse, Moonstone Bank decided to withdraw.

It no longer intends to be part of the cryptocurrency industry and wants to get out of it as soon as possible. The Moonstone Bank officials made the announcement pertaining to their decision on January 18.

Although most of the proofs have gone completely against Sam Bankman-Fried, he still claims that he is innocent. He claims that he was not involved at all in misappropriating assets belonging to the users.

However, the proofs, documents, and data gathered/presented at the court go against Sam Bankman-Fried.

Funds Seized on Binance as well

The federal agents have gone all out seizing funds belonging to the former CEO of FTX. They have even reached out to the Binance exchange and Binance US to get SBF’s funds seized there as well.

It was in the first week of 2023 when the federal agents had mentioned that they would get Robinhood shares owned by FTX seized.

They worked together with the Department of Justice (DOJ) to ensure that they got to the bottom of it. Turns out, their process has turned out to be successful as they have seized all of these funds.

Leave a Reply

Your email address will not be published. Required fields are marked *