google-site-verification=4ughixIuTRnLcSaPAOoQudexoumFVsL4qi6UJDvlUc8 Feds seize over $170 million in cash accounts linked to Sam Bankman-Fried - Trending News

Feds seize over $170 million in cash accounts linked to Sam Bankman-Fried

According to court documents filed on Friday, the Justice Department has seized more than $170 million in cash from several accounts linked to disgraced FTX co-founder Sam Bankman-Fried. In addition, the federal government reportedly seized shares worth an estimated $526 million.

The seizures took place on January 4, according to federal court documents that CBS News was able to obtain.

They included $20.7 million in cash held in accounts at ED&F Man Capital Markets and $94.5 million in a cryptocurrency-focused account at Silvergate Bank, a bank with headquarters in California. Another nearly $50 million was held at Farmington State Bank, a bank with headquarters in Washington state.

In addition, according to the court document, prosecutors seized 55.27 million shares of Robinhood stock from an ED&F Man Capital Markets account. The value of the seizure was over $526 million as of Friday’s closing price of $9.52 a share for the shares of the online trading platform Robinhood.

The 30-year-old Bankman-Fried was detained on December 12 in the Bahamas on federal accusations of conspiracy and wire fraud in connection with the failure of his cryptocurrency exchange FTX.

He entered a not guilty plea to all charges after being extradited to the United States on January 3. Due to a $250 million bond, he is still free. Until his trial, which will start in October, he has been told to stay at his parents’ home in California.

The abrupt collapse of FTX sent shockwaves through the financial community and raised concerns about the future of cryptocurrencies. Just a few days after Bankman-Fried informed investors that the company was facing a $8 billion shortfall, FTX filed for bankruptcy on November 11.

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