DOJ Seizes $470M in Robinhood Shares from FTX Execs

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• The US Department of Justice has seized $470 million in Robinhood shares from FTX Executives Sam Bankman-Fried and Gary Wang.
• The seizure was in response to charges of wide-ranging fraud against Bankman-Fried and FTX.
• The document revealed that the DOJ had seized 55,273,469 shares of Robinhood, alongside another $20,746,713.67 from ED&F Man Capital Markets.

The US Department of Justice (DOJ) is making headlines today after seizing $470 million in Robinhood shares from two FTX Executives, Sam Bankman-Fried and Gary Wang. The seizure was in response to charges of wide-ranging fraud against Bankman-Fried and FTX, with which the equity investments may be involved.

The document, filed in a New Jersey bankruptcy court, 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. The court also froze another $19,535,830 in assets from Bankman-Fried.

This comes after Bankman-Fried and his former right-hand, Gary Wang, attempted to retain ownership of almost half a billion dollars worth of Robinhood shares, despite prior objections. The DOJ has now taken control of the holdings, which were intended to be used to purchase the equity of Robinhood.

Bankman-Fried and FTX are accused of using the Robinhood shares to manipulate the markets, which the DOJ alleges is illegal and fraudulent. The charges include securities fraud, conspiracy to commit securities fraud, wire fraud, and money laundering.

The DOJ is now seeking a restraining order that would freeze all of Bankman-Fried and Wang’s assets in the US, including their Robinhood shares. The restraining order would also prevent the two from disposing of any assets in other countries and stop them from transferring or withdrawing any funds from their accounts.

If convicted, Bankman-Fried and Wang could face up to 20 years in prison for each count of fraud. The DOJ has also requested that the court order Bankman-Fried and Wang to pay restitution and civil monetary penalties for their alleged violations.

This is a developing story and more information is expected to be revealed in the coming days. In the meantime, it is unclear how the DOJ’s seizure of almost half a billion dollars worth of Robinhood shares will affect the markets and FTX’s future.