Bulletpoints:
• The US Department of Justice seized $470 million in Robinhood shares from FTX Executives Sam Bankman-Fried and Gary Wang.
• This seizure was in response to charges of wide-ranging fraud against Bankman-Fried and FTX.
• Bankman-Fried has lost over $400 million of his Robinhood equity due to the seizure.
The US Department of Justice (DOJ) has seized $470 million in Robinhood shares from two FTX executives, Sam Bankman-Fried and Gary Wang. This seizure was in response to criminal charges of wide-ranging fraud against Bankman-Fried and FTX. A court document dated January 6th revealed that the DOJ had seized 55,273,469 shares of Robinhood, alongside another $20,746,713.67 from ED&F Man Capital Markets – a holding company controlled by Bankman-Fried.
Sam Bankman-Fried and Gary Wang had previously objected to the seizure, but were unable to retain ownership of the almost half a billion dollars worth of Robinhood shares. This means Bankman-Fried has lost over $400 million of his Robinhood equity due to the DOJ’s seizure.
The DOJ has alleged that Bankman-Fried and FTX have been involved in a variety of fraudulent activities, including money laundering, securities fraud, and wire fraud. Bankman-Fried and Wang have denied these allegations and are fighting the case in court.
The seizure of the Robinhood shares is part of a larger effort by the DOJ to crack down on financial crime and ensure that those who commit such crimes face justice. The DOJ has previously seized assets from other individuals and companies involved in criminal activities, and this seizure is further evidence that the government is willing to take strong action against those who break the law.
The seizure of Bankman-Fried’s Robinhood shares is a serious blow to his wealth, but it is a necessary step to ensure that justice is served. The DOJ’s actions are a reminder that no one is above the law, and that those who break it will be held accountable.