The feds seized nearly $700 million from FTX founder Bankman-Fried

Jan 20 (Reuters) – Federal prosecutors seized nearly $700 million in assets from FTX founder Sam Bankman-Fried in January, mostly in the form of Robinhood stock, a court filing said on Friday.

Bankman-Fried, accused of stealing billions of dollars from FTX clients to pay off loans taken out by his crypto-focused hedge fund, has pleaded not guilty to fraud charges. He is scheduled to face trial in October.

The Justice Department revealed the seizure of Robinhood shares earlier this month, but it provided a full list of seized assets on Friday, including cash held at various banks and assets deposited into crypto exchange Finance.

Ownership of the seized Robinhood shares, worth about $525 million, is the subject of a dispute between Bankman-Fried, FTX and bankrupt crypto lender BlockFi.

The most recent asset seizure announced by the DOJ took place on Thursday, when prosecutors seized $94.5 million in cash from a Silvergate bank account linked to FTX Digital Markets, a subsidiary of FTX in the Bahamas. The DOJ seized more than $7 million from Bankman-Fried and other Silvergate accounts associated with FTX.

The DOJ previously seized nearly $50 million from FTX Digital Markets’ account at Moonstone Bank, a small bank in Washington state.

The DOJ is criminally seizing assets in three Binance accounts associated with Bankman-Fried, but did not provide an estimate of the value of those accounts.

Statement by Dietrich Knauth; Editing by Nolene Walter and Daniel Wallis

Our Standards: Thomson Reuters Trust Principles.

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