Feds seize almost $700 million of FTX assets in Sam Bankman-Fried criminal case
Last edited Fri Jan 20, 2023, 07:27 PM - Edit history (1)
Source: CNBC
Federal prosecutors seized nearly $700 million in cash and assets connected to Sam Bankman-Fried, primarily in the form of Robinhood shares that were owned by the FTX founder, a court filing revealed Friday.
John Ray, who replaced Bankman-Fried as CEO to guide FTX's restructuring, is trying to rescue funds that were lost by the crypto company's depositors when the firm spiraled into bankruptcy in November. Bankman-Fried was arrested on criminal fraud charges in December and is released on a $250 million bond as he awaits trial.
The 55 million-plus Robinhood shares are at the heart of a contentious multi-party battle between Caribbean litigants, representatives of bankrupt crypto lender BlockFi, Bankman-Fried himself, and FTX's bankruptcy leadership.
Federal prosecutors have alleged that the Robinhood shares were purchased using allegedly stolen customer funds. In May, Bankman-Fried revealed that he'd purchased a 7.6% stake in Robinhood and said at the time "we think it is an attractive investment." The stock closed Friday at $9.52, valuing the recovered shares at over $526 million.
Read more: https://www.cnbc.com/2023/01/20/feds-seize-almost-700-million-of-sam-bankman-frieds-assets-in-cash-and-equity.html
Article updated.
Previous article -
John Ray, who replaced Bankman-Fried as CEO to guide FTX's restructuring, is trying to rescue funds that were lost by the crypto company's depositors when the firm spiraled into bankruptcy in November. Bankman-Fried was arrested on criminal fraud charges in December and is released on a $250 million bond as he awaits trial.
The 55 million-plus Robinhood shares are at the heart of a contentious multi-party battle between Caribbean litigants, representatives of bankrupt crypto lender BlockFi, Bankman-Fried himself, and FTX's bankruptcy leadership.
Three accounts were held at Silvergate Bank, in the name of FTX Digital Markets, holding over $6 million. Those assets, held in the name of a Bahamian subsidiary, were seized by the government "on or about" Jan. 11.
Original article and headline -
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punny of you. 
People were cheated out of millions of dollars, and the government prosecutors are working on their behalf.
I guess it will be hard to peel apart "innocent" victims (not said with any sarcasm. Some were just "taken"
and participants who knew what they were doing (They used to be called "qualified investors" who had enough to lose a gamble without going to the poor house, and who boosted the scam rather publicly.
Above my pay grade to determine.
I think that there have been cases of crimes where assets have been seized and who knows where they went. Most likely, not to victims. Seems we have civil courts to expensively and painfully do that.
Then again, WHEN THE GOVERNMENT TAKES FOREVER to bring indictments (IF EVER) then civil suits are winning against thugs.
Sad situation.
I feel for some victims and fart in the general direction of others who were part of the scam.
P.S. The government seems quick to respond to crimes of the money variety, perhaps taking a cue from the Al Capone case. And slow to respond to other crimes against society. TBH, hate crimes very often leave a "paper trail" very often in "social media" a.k.a. right wing confessionals.
Another head-scratcher.
