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The American authorities have reportedly seized or will quickly confiscate 56 million shares of Robinhood tied to the previous CEO of FTX – Sam Bankman-Fried (SBF).
The 30-year-old not too long ago sought assist from a United States Chapter Court docket to acquire management of the HOOD shares.
SBF Takes One other Punch
Based on a Bloomberg coverage, the American authorities is within the means of seizing round $468 million value of Robinhood shares owned by Bankman-Fried. The supply indicated that the officers may need already accomplished the seizure.
The operation is a part of the large legislation case towards FTX’s former government, who faces quite a few prices, together with wire fraud and cash laundering.
SBF purchased a 7.6% stake within the monetary providers firm in Might final 12 months, praising Robinhood as an “engaging funding.” Latest reviews hinted that the previous crypto mogul borrowed over half a billion {dollars} from Alameda Analysis to finance the deal, partnering with FTX Co-Founder – Zixiao (Gary) Wang. SBF gained 90% possession of the 56 million shares, whereas Wang had 10%.
Bankman-Fried and the previous CEO of Alameda – Caroline Ellison – later used the shares as collateral to acquire a mortgage from the cryptocurrency lender BlockFi, which prompted a big dispute within the following months.
Three events (SBF, BlockFi, and FTX creditor Yonathan Ben Shimon) claimed they had been the rightful homeowners of the stash. The collapsed trade even asked the US authorities to cease the others from claiming possession of the shares.
Emergent’s dealer – ED&F Man Capital Markets – froze the HOOD stake in mid-November (shortly after FTX and Alameda Analysis filed for chapter safety). Bankman-Fried reportedly tried to promote the shares through the Sign utility earlier than the submitting.
No Acquisition Deal
FTX quickly expanded its presence within the first half of 2022, buying a number of cryptocurrency entities. Some reviews from final summer season suggested that the platform’s subsequent goal can be Vlad Tenev’s Robinhood. Whereas SBF stated within the following days that he’s keen on the brokerage app, he outlined that FTX had no plans to truly buy it:
“I’ve all the time been impressed by the enterprise that Vlad and his staff have constructed. That being stated, there are not any energetic M&A conversations with Robinhood.”
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