Robinhood Shares Worth Nearly $500M Seized in FTX Case (coindesk.com) 11
The U.S. Department of Justice (DOJ) has seized more than 55 million shares of Robinhood stock owned -- via a holding company -- by Sam Bankman-Fried and FTX co-founder Gary Wang, according to a court document. The shares were worth just over $456 million based on HOOD's closing price of $8.25 on Friday. CoinDesk reports: The stock had been held at an account at U.K.-based brokerage ED&F Man. The "seized Assets constitute property involved in violations" of crimes such as money laundering and wire fraud reads the court document. Sam Bankman-Fried was formally charged with those and other crimes on Dec. 13.
The Robinhood shares were in principle owned by FTX co-founders Bankman-Fried and Gary Wang through their Emergent Fidelity Technologies holding company. FTX, now run by John Ray III, had asked a judge late last month to freeze the stock. Bankman-Fried naturally opposed the move, saying, in part, he needed the shares to help pay his legal fees. According to a report last month, Bankman-Fried borrowed over $546 million from Alameda Research to purchase a 7.6% stake of Robindhood.
Meanwhile, crypto lender BlockFi, which filed for bankruptcy like FTX, claims it was owed the rights to the Robinhood shares due to a deal Bankman-Fried made in early November. "The shares were pledged as collateral against a loan taken out by Alameda Research -- the same firm whose funds were used to purchase the shares to begin with," reports CoinDesk.
The Robinhood shares were in principle owned by FTX co-founders Bankman-Fried and Gary Wang through their Emergent Fidelity Technologies holding company. FTX, now run by John Ray III, had asked a judge late last month to freeze the stock. Bankman-Fried naturally opposed the move, saying, in part, he needed the shares to help pay his legal fees. According to a report last month, Bankman-Fried borrowed over $546 million from Alameda Research to purchase a 7.6% stake of Robindhood.
Meanwhile, crypto lender BlockFi, which filed for bankruptcy like FTX, claims it was owed the rights to the Robinhood shares due to a deal Bankman-Fried made in early November. "The shares were pledged as collateral against a loan taken out by Alameda Research -- the same firm whose funds were used to purchase the shares to begin with," reports CoinDesk.
Ya, but ... (Score:5, Funny)
If the DOJ keeps seizing all Sam's assets, how will he ever be able to start a new company and repay FTX users? From Bankman-Fried ‘would give anything’ to start new business to repay FTX users [theguardian.com] (and other sources):
Sam Bankman-Fried, the former boss of the failed crypto-exchange FTX, has said he hopes to start a new business to help pay back the victims of his old firm’s collapse.
Re:Ya, but ... (Score:4, Insightful)
I just minted the Slushcoin.
There are 1000 of them.
If Sam buys one Slushcoin for $100 million, my Slushcoin holdings will be worth $99.9 billion.
I will then give Sam enough Slushcoins to pay off his marks.
And disappear quietly into the night.
Re: (Score:1)
VCs do this all the time, but instead of "coins" they flip "shares".
Re: (Score:2)
Has he tried working for a change?
Re: (Score:2)
He's so desperate to repay users he has suggested in a court filing that he himself needs the Robinhood shares since he needs money to mount a legal defence and prison is life altering whereas FTX customers "face only the possibility of economic loss"
https://news.bitcoin.com/sbf-f... [bitcoin.com]
So clearly he doesn't care much about repaying people if he tried to withhold $500m from them.
regulatory failure (Score:2)
Nevertheless, we devised regulations to prevent stupid people from being conned. Much like in the 2008 financial meltdown, however, the regulatory agencies are failing us. Every one of these failures costs the economy dearly. We need t
Re: (Score:1)
But he was leveraging the market void with a subordinated-debt mechanism, using client-facing core competencies and an agile, pro-active synergy stream!
How could he fail???
High profile names being drawn in (Score:3)
In court filings on Monday, billionaire investor Peter Thiel, quarterback Tom Brady, and investor Kevin O'Leary were named in a lawsuit [marketwatch.com] about FTX's implosion.
All owned tens of thousands of shares of FTX both personally and in their businesses.
Vultures (Score:2)
Meanwhile, crypto lender BlockFi, which filed for bankruptcy like FTX, claims it was owed the rights to the Robinhood shares due to a deal Bankman-Fried made in early November. "The shares were pledged as collateral against a loan taken out by Alameda Research -- the same firm whose funds were used to purchase the shares to begin with," reports CoinDesk.
The vultures are beginning to circle.
Re: (Score:2)
The vultures landed a long while ago and are splitting up the carcass. If you're still circling, don't expect to get anything but the dry bones.
BlockFi owed right to shares? (Score:2)
What about the companies whose shares they represent? The legitimate companies that produce stuff (along with all their human employees) are just now playthings to settle people's gambling addictions?