The U.S. government has seized or is in the process of seizing hundreds of millions of dollars worth of Robinhood Markets shares as part of the fraud case against Sam Bankman-Fried, founder of the failed crypto firm FTX, lawyers said in court Wednesday.
The government also is taking control of assets in bank accounts that were part of a bankruptcy case involving one unit of the FTX empire in the Bahamas, said James Bromley, a lawyer leading the main FTX insolvency proceeding in the US.
The seizures began as part of the fraud case against Bankman-Fried and other top FTX officials.
The shares, now worth more than $460 million, have been claimed by various creditors of FTX, who filed court cases to try to control of them. A court hearing will eventually be held to determine what happens to the shares and the assets seized from the bank accounts, Seth B. Shapiro, a lawyer with U.S. Department of Justice said during a court hearing held by video in Wilmington, Delaware.
Bankman-Fried was extradited from the Bahamas last month to face fraud charges in the US.
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