US authorities are seizing $460M in Robinhood shares tied to FTX: Report

The U.S. Department of Justice has reportedly seized, or is in the process of seizing, $400 million worth of Robinhood shares associated with FTX as part of a lawsuit against the cryptocurrency exchange.

Reuters reported on Jan. 4 that U.S. officials Said A judge in the process of seizing assets related to FTX and former CEO Sam Bankman-Fried, including 56 million shares of Robinhood — worth about $468 million at the time of going public, said the report said. It took place the day after a judge in a criminal case against SBF ordered yu7po not to access or transfer any cryptocurrencies or assets from FTX or Alameda.

Control of Robinhood shares is being contested as a number of investors and creditors are being liquidated amid FTX’s bankruptcy proceedings. BlockFi, Bankman-Fried and his FTX creditor Yonathan Ben Shimon all claim rights to the assets.

Bankman-Fried pleaded not guilty to eight counts in federal court on January 3, including wire fraud, securities fraud and campaign finance violations. He previously denied moving funds from Alameda and said he lost access to his wallet since he stepped down as CEO in November.

Related: The outcome of SBF’s prosecution could determine how the IRS treats FTX’s losses.

The former FTX CEO has been under house arrest in his parents’ home in California since December but has been allowed to travel for approved reasons, including appearing in court in New York. His trial date is Oct. 2. It is set.