Federal prosecutors have reportedly seized around $700m in assets from FTX founder Sam Bankman-Fried, as part of an ongoing court case.
Among the assets taken were 55.2 million shares in digital trading app Robinhood. At the time of writing, these are worth around $526m.
Other assets seized were $20.7m in US currency in accounts at ED&F Man Capital Markets, $49.9m in accounts at Farmington State Bank and $100m in accounts at Silvergate Bank.
It also seized an undisclosed amount of funds from Binance accounts.
Earlier in the year, Bankman-Fried pleaded not guilty to charges alleging he defrauded customers. He is currently facing eight criminal counts, including wire fraud and money laundering conspiracy.
FTX founder Bankman-Fried is accused of looting FTX customers’ deposits to support his Alameda Research hedge fund, buy real estate and donate millions of dollars to political causes.
The collapse of FTX has sent shockwaves across the cryptocurrency industry. Last week, crypto brokerage Genesis filed for bankruptcy protection. This move was made as part of strategic actions to achieve a global resolution to maximise value for all clients and stakeholders, as well as strengthen its business for the future.
This filing came days after it was reported Genesis owes over $3bn to creditors. To tackle this, DCG is looking to sell assets in its venture portfolio to raise money. Genesis has also recently cut 40% of its workforce and shut its wealth management business to reduce costs.
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