24/7 Cryptocurrency News

US Prosecutors To Seize $460M Robinhood Shares Linked To Bankrupt FTX

US Department of Justice is moving ahead to seize 56 million Robinhood shares worth $460 million that were linked to defunct exchange FTX.
Published by
US Prosecutors To Seize $460M Robinhood Shares Linked To Bankrupt FTX

The US Department of Justice is moving forward to seize Robinhood shares worth over $460 million that were linked to SBF’s bankrupt crypto exchange FTX. Along with Robinhodd shares, the prosecutors are also seizing assets in bank accounts FTX held in the Bahamas.

Prosecutor Seth Shapiro declared in a hearing that the government is taking control of the shares and seizing assets in bank accounts FTX held in the Bahamas, reported Wall Street Journal.

Robinhood shares are down 13.55% in last 30 days.

Advertisement

What will happen To 56 million Robinhood shares?

The seizures are part of the DoJ’s criminal indictment against the former FTX chief Sam Bankman-Fried. It will be decided in the future hearing what the government plans to do with the approximately 56 million shares, Shapiro said. SBF has pleaded not-guilty this week in a US court against all the charges.

According to the SEC filing, SBF’s FTX had purchased around 7.6% shares of the famous online brokerage firm back in May last year. There were even talks of FTX completely acquiring Robinhood last year but it did not happen.

Advertisement

BlockFi, FTX customers claim rights on 56 Mln Robinhood shares

Crypto lending firm BlockFi that filed for bankruptcy in the aftermath of FTX collapse, claimed in its bankruptcy filing that the FTX owes them these 56 million Robinhood shares. According to BlockFi, SBF had promised to put these Robinhood shares as collateral in exchange for more than $600 million in loans to Alameda Research. SBF’s company had signed an agreement to bailout BlockFi for $240 million in July. But when FTX began to collapse, the crypto lending firm revealed it had significant exposure to FTX and filed for bankruptcy.

On the other hand, FTX customers have also filed a class-action lawsuit against the defunct crypto exchange, demanding that they should have the first right on whatever assets FTX has left, including 56 million Robinhood shares.

Share
Jai Pratap

Jai Pratap is a Crypto and Blockchain enthusiast with over three years of working experience with different major media houses. His current role at CoinGape includes creating high-impact web stories, cover breaking news, and write editorials. When not working, you'll find him reading Russian literature or watching some Swedish movie.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Ethena Labs Secures Fresh Funding From ArkStream Capital, ENA Price Spikes

Ethena Labs has secured fresh funding from ArkStream Capital as it expands its ecosystem in…

September 6, 2025
  • 24/7 Cryptocurrency News

SEC Forms International Task Force to Crack Down on Pump-and-Dump Schemes

The U.S. Securities and Exchange Commission has launched a task force designed to tackle cross-border…

September 6, 2025
  • 24/7 Cryptocurrency News

Justin Sun Pledges $20M Buy Following WLFI Wallet Freeze

Justin Sun Justin Justin Sun responded to World Liberty Financial freezing his wallet by promising…

September 6, 2025
  • 24/7 Cryptocurrency News

Expert Blames ‘Secret Committee’ for Rejecting MSTR Stock Inclusion to S&P 500

Michael Saylor's Strategy (NASDAQ: MSTR) missed the inclusion in the S&P 500 index on Friday,…

September 6, 2025
  • 24/7 Cryptocurrency News

MARA Bitcoin Treasury Nears $6 Billion, Trails Only Strategy in Public Rankings

MARA announced that it now holds $5.9 billion worth of Bitcoin. This cements its position…

September 6, 2025
  • 24/7 Cryptocurrency News

Senate Banking Committee Releases Updated Draft Crypto Market Structure Bill

The U.S. Senate Banking Committee has released an updated version of the draft Crypto Market…

September 6, 2025