In a Notice of Asset Seizures released by the United States Department of Justice, over 55M Robinhood shares were linked to Sam Bankman-Fried and FTX co-founder Gary Wang.
- “The United States has seized 55,273,469 shares of the stock of Robinhood Markets Inc. and $20,746,713.67 in United States currency (together, the “Seized Assets”) from an account at ED&F Man Capital Markets Inc. pursuant to judicially authorized seizure warrants issued in the Southern District of New York,” states the DOJ.
- In this Chapter 11 case, it is noted that the debtors are BlockFi Inc.
- The notice of asset seizures also notes that the seizures “were effected pursuant to criminal statutes…as well as civil statutes…because the Seized Assets constitute property involved in violations of money laundering and/or the proceeds of violations of wire fraud, or property traceable thereto.“
- The DOJ also notes that the seized assets are not a part of the bankruptcy estate. These assets are likely the most valuable holdings left within the FTX business, and it is still being determined what will occur with the money. But the “seizure is governed by the criminal and/or police or regulatory power exceptions to the automatic stay in sections 362(b)(1) or 362(b)(4) of the Bankruptcy Code.“
See Related: United States DOJ Opens Up For Statements From FTX Victims
