1 year ago
The U.S. Department of Justice (DOJ) is successful the process of seizing Robinhood shares, worthy astir $460 million, that are linked to erstwhile FTX CEO Sam Bankman-Fried (SBF). “We judge that these assets are not spot of the bankruptcy property oregon that they autumn wrong the exceptions … of bankruptcy code,” a DOJ lawyer told the justice overseeing the FTX bankruptcy case.
DOJ Seizing Robinhood Shares Linked to FTX
The U.S. authorities is successful the process of seizing 56 cardinal shares of Robinhood Markets Inc. (Nasdaq: HOOD), worthy astir $460 million, that are linked to the disgraced FTX laminitis Sam Bankman-Fried (SBF), said Seth Shapiro, an lawyer with the U.S. Department of Justice (DOJ) astatine an FTX bankruptcy tribunal proceeding successful Delaware Wednesday.
Shapiro told Judge John Dorsey, who oversees the FTX bankruptcy case:
We judge that these assets are not spot of the bankruptcy property oregon that they autumn wrong the exceptions … of bankruptcy code.
According to Robinhood’s filing with the Securities and Exchange Commission (SEC) successful May past year, Emergent Fidelity Technologies took a 7.6% stake successful Robinhood, and Bankman-Fried was its sole manager and bulk owner.
Following the FTX bankruptcy filing, the ownership of the Robinhood shares is disputed by the caller FTX management, Bankman-Fried, an idiosyncratic FTX creditor, and crypto lender Blockfi which besides filed for bankruptcy successful November past year.
Due to aggregate parties laying claims to the Robinhood shares, the caller FTX absorption has filed a question to the Delaware bankruptcy tribunal to support the assets frozen until the tribunal “can resoluteness the issues successful a mode that is just to each creditors of the debtors.”
FTX lawyer James Bromley said during Wednesday’s hearing: “The question arsenic to the ownership of those Robinhood shares was an unfastened question earlier the seizure took place.” He added:
We surely judge we person rights with respect to those assets … We are successful alignment astatine the contiguous clip with the U.S. authorities and the instrumentality enforcement officials successful taking these steps.
Bromley stressed that the Robinhood shares being seized by Federal prosecutors are from accounts that are not presently nether the nonstop power of the bankrupt FTX.
The DOJ and aggregate U.S. regulators, including the SEC, person charged Bankman-Fried with aggregate counts of fraud. However, the erstwhile FTX CEO has pleaded not guilty to each charges.
What bash you deliberation astir the DOJ seizing Robinhood shares linked to FTX and Sam Bankman-Fried? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This nonfiction is for informational purposes only. It is not a nonstop connection oregon solicitation of an connection to bargain oregon sell, oregon a proposal oregon endorsement of immoderate products, services, oregon companies. Bitcoin.com does not supply investment, tax, legal, oregon accounting advice. Neither the institution nor the writer is responsible, straight oregon indirectly, for immoderate harm oregon nonaccomplishment caused oregon alleged to beryllium caused by oregon successful transportation with the usage of oregon reliance connected immoderate content, goods oregon services mentioned successful this article.
English (US) 