BlocksInform
In the last update, sam bankman-fried (sbf), former CEO of a failed ftx crypto swap, asks the court to block debtors' access to its red timber shares. A report announced by US prosecutors revealed the Robinhood shares are worth $450 million.
Sbf has been under house arrest since he was apprehended by the Bahamas Royal Police after the United States charged him criminally. All this occurred in December 2022, weeks after the crash of its crypto exchange, leaving a lot with multiple losses.
Department of Justice Set To Seize SBF’s Robinhood Shares
FTX Exchange and Alameda Research are now under judicial review. Executors are looking for any assets available to reimburse ftx obligors.
In a previous court hearing, a US Department of Justice prosecutor declared their intention to seize SBF’s’ shares worth $450 million. In the meantime, the next hearing will tell us what the Department of Justice will do with shares of red wood.
Sam Bankman-Fried filed a motion to the United States Bankruptcy Court in Delaware opposing the enforcement of control over his shares. In the court filing, he asserts that the robinhood shares have nothing to do with the ftx-affiliated undertakings.
In a Thursday case, SBF counsel argued that their client needs money to pay his legal fees and expenses.
Sam Bankman-Fried on the Robinhood Shares story.
In the meantime, many companies with significant exposure to the failed stock market are facing the domino effect of the crash. For instance, genesis trading also fights against the consequences of the ftx crisis. Also, crypto lending firm BlockFi has filed for bankruptcy and seeks to claim the Robinhood shares.
Blockfi claimed that Sam Bankman-Fried had promised to bail them out with a loan of 600 million dollars, which he would get by using the shares of red wood as security. The previous CEO signed $240 million Blockfi rescue agreements in July 2022. So blockfi had a major exposure to ftx when the crisis hit and had to file for bankruptcy.
Before BlockFi’s’ bankruptcy, FTX customers filed a class action lawsuit against Sam Bankman-Fried and FTX exchange. In the class proceeding, they asserted that they have rights to all remaining ftx assets. A class proceeding is where a plaintiff is suing a defendant on behalf of one or more groups that would not be present in court.
In particular, the crypto stock exchange, ftx, has revealed that it has more than one million creditors in its bankruptcy. The reports also suggest that ftx and sam bankman-fried are being investigated by police and regulators. A number of notable celebrities have lost large amounts of investment in the FTX fiasco; Tom Brady is one of the many investors in FTX.
Meanwhile, since the collapse of FTX, FTT, the native token of the exchange, has declined by more than 75 per cent and is currently trading at $0.916. The price of the FTT has fallen by 2.45% over the last 24 hours.
