Friday, February 3, 2023

US prosecutors seize nearly $700 million in assets of Sam Bankman-Fried

Hours after the US Securities and Exchange Commission (SEC) indicted Sam Bankman-Fried for fraud, federal prosecutors now announce that they have seized approximately $700 million in cash and FTX assets from SBF.

John Ray, the current CEO of FTX, will try to rescue the fund, according to CNBC exchange, alleging that they are “depositors’ funds”. Meanwhile, 55 million Robinhood shares are in a court battle between Blockfi lawyers and SBF representatives.

US prosecutors indicated that Robinhood shares were purchased with stolen client funds, as months before FTX’s bankruptcy, SBF claimed it had bought a 7.6% stake in Robinhood, calling it an “attractive investment”. Was.

A few days ago, the SEC accused SBF of: using funds from FTX clients in its Alameda Research Fund, undisclosed preferential treatment received by Alameda in FTX, and FTX’s dangerous exposure to the Alameda Fund, which had moved its assets to illiquid entities such as FTX. passed in token. , ftt.

Although SBF has repeatedly denied misappropriation of client funds, prosecutors have already seized three accounts at Silvergate in the name “FTX Digital Markets” worth more than $6 million. On the other hand, about $50 million was deposited in Moonstone Bank linked to FTX.

US will continue to seize funds from SBF

According to CNBC, federal prosecutors have not disclosed all the funds or assets seized, some of which may be in one Binance account and two more in a Binance.US account.

Hours earlier, FTX’s new CEO, John J. Ray III said there may be a possibility to reopen FTX exchange And he believes that the move to reopen FTX will offer more value to customers rather than simply liquidating assets and closing or selling off the platform.

John J. Ray III was brought on board to determine what value could be salvaged from the company following its tumultuous collapse last year. Mr. Ray brought with him a wealth of experience, having previously worked at the defunct Enron.

Since then, Ray has managed to raise a significant amount of capital to help make FTX as perfect for users as possible. Recently, the company discovered $5 billion in assets. Providing customers with a glimmer of hope following FTX’s recent Chapter 11 bankruptcy filing.


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Nation World News Desk
Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
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