• The United States Department of Justice is now intervening in the dispute between FTX and other parties by attempting to seize $465 million worth of Robinhood Markets shares linked to former FTX CEO Sam Bankman-Fried.
• Creditors of FTX have started legal proceedings in an effort to reclaim the shares, and a court hearing is to be held to decide the fate of the seized shares and bank account assets.
• Sam Bankman-Fried has denied all allegations of fraud and cheating customers and investors at FTX.
The United States Department of Justice has entered the fray in the ongoing dispute between the now-defunct crypto exchange FTX and other parties. The DOJ has announced plans to seize Robinhood Markets shares worth $465 million that are linked to Sam Bankman-Fried, the founder and former chief executive officer of FTX.
The Robinhood shares are now at the center of the dispute, with FTX creditors having launched judicial actions in an effort to recover them. To decide the disposition of the seized shares and bank account assets, a court hearing has been scheduled. Seth B. Shapiro, a DOJ attorney, stated that this hearing will take place.
Sam Bankman-Fried has refuted all allegations that he cheated customers and investors, pleading not guilty in a New York Federal Court on Tuesday. He was accused of running a “fraud of epic proportions” at FTX, allegedly pocketing customer deposits to use for things like his other company, Alameda Research, real estate purchases, and political contributions.
FTX attempted late last month to prevent BlockFi, a cryptocurrency trading platform, from acquiring control of the Robinhood shares by claiming that Bankman-Fried had transferred them to the company without authorization. However, the motion was denied by a judge, who found that the transfer was valid.
The court hearing to decide the fate of the seized Robinhood shares and bank account assets is still pending, and the DOJ is keeping a close eye on the situation as it continues to unfold. All parties involved in the dispute are eagerly awaiting the court’s ruling, as it will be determinative of the resolution of the matter.