U.S. Feds seize $700 Mln in assets tied to FTX’s SBF

Key Takeaways

• 3 of the seized accounts were held at Silvergate bank under FTX Digital Markets name, holding more than $6 million. 
• Feds also seized around $50 million from Moonstone Bank, which had links to the FTX management.

The United States Federal prosecutors have seized $697 million in assets belonging to Sam Bankman-Fried – the founder and former CEO of the collapsed crypto exchange, FTX.

Reportedly,3 of the seized accounts were held at the now struggling Silvergate bank under the name of FTX Digital Markets, holding over $6 million. The assets from the platform were seized around January 11, 2023. Following FTX implosion, Silvergate’s deposits plummeted nearly 70% in the fourth quarter of 2022 as investor fears surrounding crypto-related firms spiked

The prosecutors also seized around $50 million from Moonstone Bank, which had links to the FTX management. As per a CNBC report, 55 million Robinhood shares were primarily owned by Sam Bankman-Fried.

Earlier this month, the U.S. Department of Justice seized more than 55 million shares of Robinhood (HOOD) stock owned – via a holding company – by SBF and FTX co-founder Gary Wang. Federal prosecutors have argued that the Robinhood shares were purchased using allegedly stolen customer funds. The shares on Robinhood were purchased in May 2022, with SBF gaining a 7.8% stake in the firm.

FTX, which filed for bankruptcy on November 11, has requested a federal court to weigh in on the ownership of around $450 million worth of Robinhood shares. The prosecutors were able to seize 3 accounts belonging to SBF. However, the amount confiscated was not revealed by the authorities. As per media reports, the federal prosecutors have also seized funds from Binance and Binance U.S.

Department of Justice counsel Seth Shapiro had earlier stated that assets tied to FTX were in the process of being seized from a number of banks while also mentioning the name Silvergate, a lender closely tied to FTX. Shapira had then said that seized assets could later be subject to civil or criminal forfeiture proceedings. SBF, arrested last month, was granted bail on a $250 million bond accompanied by several conditions.