• Sam Bankman-Fried (SBF), former CEO of a bankrupt crypto exchange FTX, has requested the court to block debtors‘ access to his Robinhood shares which are worth $450 million.
• SBF has been under house arrest since his apprehension by the Royal Bahamas Police Force after the U.S. filed criminal charges against him in December 2022.
• In a Thursday filing, SBF’s‘ lawyers argued that their client requires money to pay his legal fees and expenses.
Sam Bankman-Fried, the former CEO of a bankrupt crypto exchange FTX, has been under house arrest since his apprehension by the Royal Bahamas Police Force after the U.S. filed criminal charges against him in December 2022. In the latest update, Sam has requested the court to block debtors‘ access to his Robinhood shares which are worth $450 million.
The U.S. Department of Justice has declared their intention to seize Sam Bankman-Fried’s Robinhood shares and the next hearing will reveal what the Department of Justice will do with the shares. In a Thursday filing, SBF’s‘ lawyers argued that their client requires money to pay his legal fees and expenses.
FTX Exchange and Alameda Research are now under the control of liquidators assigned by the court who are looking for any available assets to repay FTX debtors. Sam Bankman-Fried filed a motion to the United States Bankruptcy Court in Delaware opposing the enforcement of control over his shares. In the court filing, he claims the Robinhood shares have nothing to do with any FTX-affiliated firms.
The future is uncertain for Sam Bankman-Fried as the court will decide what to do with his Robinhood shares. Many firms with considerable exposure to the now-bankrupt crypto exchange are hoping for a favorable outcome. However, the situation remains unclear and the outcome of the court case will decide the fate of SBF’s Robinhood shares.
The court hearing is expected to take place soon and the outcome of the case will be closely watched by the crypto community. Whatever the outcome, the incident serves as a lesson for the crypto space about the importance of risk management and the potential consequences of mismanaging finances.