• The United States Department of Justice (DOJ) is reportedly preparing to seize and liquidate Sam Bankman-Fried’s (SBF) 56 million Robinhood Markets Inc (NASDAQ: HOOD) shares, valued at approximately $465 million.
• The DoJ believes SBF engaged in a year-long fraud business that cost investors and customers billions of dollars.
• A hearing has been set for October in the US court where SBF has pleaded not guilty to fraud charges.
The United States Department of Justice (DOJ) is reportedly moving to seize and liquidate Sam Bankman-Fried’s (SBF) 56 million shares of Robinhood Markets Inc (NASDAQ: HOOD), valued at approximately $465 million. This follows allegations that SBF was engaging in a year-long fraud business that cost investors and customers billions of dollars.
According to media outlet Reuters, US attorney Seth Shapiro told US Bankruptcy Judge John Dorsey – who is overseeing the FTX bankruptcy – that SBF’s stake in Robinhood are the proceeds of the fraud business. As such, the United States attorney believes the $465 million should be seized and shared between FTX stakeholders, including BlockFi.
The case is set to be heard in a United State court in October, where SBF has pleaded not guilty to fraud charges. Experts believe that SBF will be fighting a steep legal battle, as the DoJ has already begun to build its case against him. In December, SBF filed an affidavit in an Antigua court, which outlined his purchase of approximately 7.42 percent of HOOD stock via Emergent Fidelity Technologies Ltd, using funds borrowed from Alameda Research.
The case is likely to be closely watched by Robinhood’s shareholders, as well as the investment community at large. If the DOJ is successful in its efforts to seize SBF’s shares, then it could have a significant impact on the company’s stock price. In the meantime, SBF’s legal team is likely to be doing its utmost to build a strong defense for the upcoming hearing.