Feds Seize More Than $170 Million in Cash Accounts Linked to Sam Bankman-Freed

The Justice Department seized more than $170 million in cash from multiple accounts linked to disgraced FTX co-founder Sam Bankman-Freed, according to court documents filed Friday. This is in addition to about $526 million in stocks that were also confiscated by the federal government.

The seizure occurred on January 4, according to federal court documents obtained by CBS News.

These included $94.5 million in an account at Silvergate Bank, a California bank specializing in cryptocurrencies, as well as almost $50 million at Farmington State Bank, which is located in Washington State, and $20.7 million in foreign currency at ED&F Man. Capital Markets.

Prosecutors also seized 55.27 million shares of Robinhood from an ED&F Man Capital Markets account, according to the lawsuit. Shares of Robinhood, an online trading platform, closed on Friday at $9.52 per share, bringing the value of this withdrawal to more than $526 million.

On December 12, Bankman-Fried, 30, was arrested in the Bahamas on federal wire fraud and conspiracy charges related to the collapse of his FTX cryptocurrency exchange.

After being extradited to the United States, he pleaded not guilty to all charges at a January 3 hearing. He remains at large on $250 million bail. He has been ordered to live at his parents’ home in California until his trial is due to begin in October.

The sudden collapse of FTX reverberated through the financial world and raised questions about the viability of the cryptocurrency. On Nov. 11, FTX filed for bankruptcy just after Bankman-Fried told investors the company was running an $8 billion deficit.

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