US authorities have reportedly confiscated or will soon confiscate 56 million shares of Robinhood linked to former CEO of FTX – Sam Bankman-Fried (SBF).
The 30-year-old recently sought help from the US Bankruptcy Court to take control of HOOD shares.
SBF takes another hit
According to Bloomberg reportsThe US government is in the process of seizing approximately $468 million in Robinhood shares owned by Bankman Fried. The source stated that the officials may have already completed the control process.
The operation is part of the massive legal case against the former FTX boss, who faces numerous charges, including fraud and money laundering.
SBF Sold 7.6% in the financial company last May, hailing Robinhood as an “attractive investment.” latest reports implicit That the former crypto mogul borrowed more than half a billion dollars from Alameda Research to fund the deal, teaming up with FTX co-founder Zixiao (Gary) Wang. SBF acquired 90% ownership of 56 million shares, while Wang retained 10%.
Bankman-Fried and former CEO of Alameda – Caroline Ellison – later used the shares as collateral to obtain a loan from cryptocurrency lender BlockFi, which led to a major dispute in the following months.
Three parties (SBF, BlockFi and FTX creditor Yonathan Ben Shimon) claimed to be the rightful owners of the deposit. The stock market collapsed Requested US authorities to prevent others from claiming ownership of the shares.
Emergent broker – ED&F Man Capital Markets – froze HOOD’s stake in mid-November (shortly after FTX and Alameda Research filed for bankruptcy protection). Bankman-Fried allegedly attempted to sell shares via Signal prior to filing.
FTX rapidly expanded its presence in the first half of 2022, acquiring several cryptocurrency entities. Some reports from last summer I suggested The next target for the platform will be Vlad Tenev’s Robinhood. While the SBF said in the following days that it was fond of applying for mediation, it did the summary That FTX has no plans to actually buy it:
“I have long admired the business that Vlad and his team have built. However, there are no active M&A talks with Robinhood.”
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