DOJ Seizes $470M in Robinhood Shares from FTX Executives

admin 10. January 2023 0 Comments

Bullet Points:
• The US Department of Justice 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 DOJ took 55,273,469 shares of Robinhood and another $20,746,713.67 from ED&F Man Capital Markets.

The US Department of Justice (DOJ) recently seized over $400 million in shares of the popular stock trading platform, Robinhood, from executives at FTX. The move came in response to charges of wide-ranging fraud against Sam Bankman-Fried (SBF), former right-hand Gary Wang and their company FTX.

The court 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 co-owned by SBF and Wang. The assets were seized in an effort to prevent the individuals from retaining ownership of the shares.

The charges against SBF and FTX are not yet publicly known, however the DOJ’s action indicates that the individuals and their company are under investigation for illicit activities. This is not the first time that SBF and FTX have been under investigation, as they were previously accused of insider trading in relation to their investments in Robinhood.

The DOJ’s seizure of the Robinhood shares is just the latest development in the ongoing saga between SBF and his erstwhile right-hand, Wang. The two have been embroiled in a legal battle for months over the ownership of the shares, with SBF claiming it was his rightful property while Wang argued that it belonged to FTX.

The seizure of the Robinhood shares is sure to have a significant impact on both SBF and FTX. The loss of the shares could not only put a dent in SBF’s wealth, but could also weaken FTX’s position in the market.

It remains to be seen how the ongoing investigation will play out and how it will affect SBF, Wang and FTX. Whatever the outcome, the DOJ’s decision to seize the Robinhood shares is sure to reverberate across the business world.