The US Department of Justice (DOJ) has reportedly taken an action against FTX that reportedly involves the mobile-based trading application, Robinhood.
The latest updates suggest that the US DOJ has reportedly seized a large number of shares of Robinhood. The total value of the shares seized by Robinhood accounts for over $400 million.
FTX Shares Seized by DOJ
The reports confirm that the Robinhood shares that the US DOJ has seized were under the possession of the FTX exchange.
As the FTX exchange has already filed for bankruptcy and all of its funds have been confiscated, the exchange’s shares will be seized as well.
The information has been shared by US officials on January 4. The report shows that the judge presiding over the exchange’s bankruptcy had been processing the financial assets of the platform.
The judge was also reviewing the financial data belonging to the former CEO of the exchange, Sam Bankman-Fried.
While going through the asset and funds, the judge was made aware of the 56 million shares that belonged to the FTX exchange at Robinhood.
The total valuation of the Robinhood shares owned by the FTX brand is worth around $468 million.
SBF’s Recent Activity Triggered the Judiciary
Although the case was moving toward its conclusion at a slow pace, Sam Bankman-Fried’s recent activities triggered the judiciary to take fast action.
Just recently, it was reported that SBF had withdrawn several hundred thousand worths of funds from one of the exchanges in Seychelles.
SBF did it despite being strictly ordered by the judge not to spend more than $1,000 without the court’s permission.
His recent activity resulted in the court taking strict action against him and his company. Therefore, the Feds have decided to seize all the funds belonging to the exchange and SBF on multiple companies.
The Investors and Creditors are Unhappy
It has been almost two months since the FTX and the Alameda Research platforms filed for bankruptcy. Still, the investors have not been returned with any funds and the same case is for the creditors.
This has left the entire cryptocurrency community extremely unhappy with the way things are being handled by the bankruptcy court.
According to the investors and the creditors, SBF has been doing whatever it pleases despite strict orders issued by the court.
Just recently, it was pointed out that more than 25 wallets from the Alameda Research platform had started sending out funds.
The wallets were active despite the fact that the court had ordered all activities to be ceased on the platforms. Even then, many questions were raised against the nature of the transfers from the Alameda platform.
The wallets were involved in transferring out funds in millions of dollars and then mixed them to hide their traces.
It was SBF who was blamed for carrying out the withdrawals but he completely denied the claims. Still, the investors/creditors are adamant that someone from the inside was involved in the activity.
FTX Wants to Sell Subsidiaries
In addition to the above, FTX has recently submitted a request at the US bankruptcy court requesting permission to sell FTX subsidiaries.
These subsidiaries are operating in Japan and Europe, claiming that it wants to clear out the finances so it can continue running its remaining businesses.
However, the creditors/investors are not happy with the request submitted by the FTX lawyers. They have a bad feeling about the latest request launched by the FTX brand.
As per them, FTX will sell the businesses and will find a way to swallow the proceeds from the sales as well.
SBF is Acting Fishy
Initially, SBF claimed that he never wanted to cause harm to his investors or creditors. However, his actions have proven to be exactly the opposite of his claims and the perpetrated claims.
He has recently pleaded not guilty to several of the crimes that have been imposed against him involving the FTX and the Alameda platforms.
