February 5, 2023

U.S. Authorities Seize $700 Million in Sam Bankman-Freed's Assets

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U.S. Authorities Seize $700 Million in Sam Bankman-Freed's Assets

According to CNBC, the total amount of assets confiscated from the founder of the FTX exchange amounted to almost $700 million. At the same time, more than half of them are stocks of the Robinhood service.

In addition to Robinhood shares, which costamounts to about $460 million, US prosecutors managed to withdraw funds from Silvergate bank accounts in the amount of more than $6 million. About $50 million more were confiscated from Moonstone bank accounts. Funds were also withdrawn from accounts on the Binance exchange and the American division of the site, however, the value of these assets is unknown.

U.S. Attorney's Office says fundsused by Sam Bankman-Fried to buy shares in Robinhood were borrowed from FTX customer deposits. The former CEO of the site himself denies all allegations of misuse of funds. Note that now the 55 million shares of Robinhood confiscated from Bankman-Fried are already worth $526 million.

It was previously reported that interim FTX managerswere able to discover $5 billion owned by the exchange. Moreover, according to the new management of the site, these are liquid assets that can be used to compensate for the losses of customers.