The majority of the confiscated assets were in the stocks of Robinhood, whose ownership has been a source of contention between Bankman-Fried, FTX, and the insolvent crypto lender BlockFi.
The founder of crypto-exchange FTX, Sam Bankman-Fried, has had nearly $700 million worth of assets seized by federal prosecutors, according to a court filing. The majority of these assets were in the form of Robinhood stock, valued at around $525 million.
Bankman-Fried has been accused of stealing billions of dollars from FTX customers to pay off debts incurred by his crypto-focused hedge fund, and he has pleaded not guilty to fraud charges. He is set to face trial in October.
The Department of Justice (DOJ) announced the seizure of the Robinhood shares earlier this month, but a more detailed list of assets was provided on Friday. This included cash held at various banks, as well as assets deposited at crypto exchange Binance.
The ownership of the seized Robinhood shares has been the subject of disputes between Bankman-Fried, FTX and bankrupt crypto lender BlockFi.
The most recent seizure of assets took place on Thursday, when prosecutors seized $94.5 million in cash from an account at Silvergate Bank, which was associated with FTX Digital Markets, a subsidiary of FTX based in the Bahamas. In addition, more than $7 million was seized from other Silvergate accounts connected to Bankman-Fried and FTX.
The DOJ had previously seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a small bank located in Washington state. Assets in three Binance accounts associated with Bankman-Fried are also subject to criminal forfeiture, but the DOJ has not provided an estimate of the value of these accounts.
It should be noted that the accusations against Bankman-Fried have not been proven in court and the trial is still to come. This is just a seizure of assets as a measure of precaution.
This news highlights the complexity of the crypto-industry and the need for regulations to be put in place to protect investors and prevent fraud. It also highlights the importance of due diligence when investing in crypto-assets and the need to be aware of the risks involved.
In the end, regardless of the outcome of the trial, the seizure of assets will have a significant impact on the operations of FTX and the crypto industry as a whole.