On Friday, federal prosecutors seized over $697 million in cash and assets connected to Sam Bankman-Fried, the former chief executive of crypto company FTX. The majority of these assets were Robinhood shares owned by Bankman-Fried.
John Ray, the new CEO of FTX, is attempting to recover funds lost by depositors when the company filed for bankruptcy in November. Bankman-Fried was arrested on criminal fraud charges in December and is currently out on a $250 million bond.
It has been revealed that three accounts held at Silvergate Bank, in the name of FTX Digital Markets, contained over $6 million. Additionally, almost $50 million was located at Moonstone Bank, a U.S. financial institution with ties to FTX management, and three Binance accounts were also seized, though no value was attached to them.
The seized assets are currently in the middle of an ongoing multi-party battle between Caribbean litigants, representatives of BlockFi, Bankman-Fried himself, and FTX's bankruptcy leadership. It remains unclear how the seized assets will affect the outcome of this dispute.
At the time of reporting, no further information was available. It is yet to be seen how the seized funds will be distributed and how the case will unfold.