FTX cofounders' Robinhood shares worth over $450 million seized
Quick Take
- More than 55 million shares of Robinhood stock owned by FTX co-founders Sam Bankman-Fried and Gary Wang have been seized by the U.S. Department of Justice.
The U.S. Department of Justice seized more than $456 million in Robinhood shares owned by FTX co-founders Sam Bankman-Fried and Gary Wang.
A court filing dated Jan. 6 says the shares were seized because they constitute property involved in money laundering or wire fraud violations.
A lawyer for the Justice Department last week said that the it was seizing hundreds of millions of dollars in Robinhood shares linked to FTX. Bankman-Fried responded by filing a court action to block debtors from taking control of his stake in Robinhood.
The disgraced former CEO owns 90% of Emergent Fidelity Technologies, an entity that owns more than 50 million shares in Robinhood stock. Bankman-Fried stepped down as FTX CEO when the firm filed for bankruptcy protection in November.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
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