• The U.S. Department of Justice (DOJ) has seized 55 million shares of Robinhood (HOOD) stock owned by FTX founder Sam Bankman-Fried and co-founder Gary Wang.
• The shares were worth just over $456 million based on HOOD’s closing price of $8.25 on Friday.
• Bankman-Fried has been formally charged with crimes such as money laundering and wire fraud.
The U.S. Department of Justice (DOJ) has recently seized a substantial number of Robinhood (HOOD) shares owned by two of the most prominent figures in the crypto world, FTX founder Sam Bankman-Fried and co-founder Gary Wang. The two were in possession of 55 million shares of HOOD stock, worth a total of just over $456 million at the close of Friday’s trading session.
The stock was held in an account at U.K.-based brokerage ED&F Man and was ultimately owned by Bankman-Fried and Wang through their Emergent Fidelity Technologies holding company. This seizure was done in connection with the formal charges brought against Bankman-Fried on December 13th for a number of crimes, including money laundering and wire fraud.
In response to the DOJ’s action, FTX – now run by John Ray III – had asked a judge late last month to freeze the stock. Bankman-Fried then filed an opposition to the move, arguing that he needed the shares to help pay his legal fees. The judge ultimately sided with the DOJ and ordered the seizure of the shares.
This marks a major development in the ongoing case against Bankman-Fried and serves as a reminder that the DOJ will not hesitate to take action against those who violate the law. The implications of this case could reach far beyond this particular case, as it serves as a warning to those in the crypto space that they must comply with all applicable laws and regulations.
It remains to be seen what will happen to the seized shares of HOOD stock and how it will affect Bankman-Fried’s legal proceedings. However, it is clear that the DOJ’s action has sent a powerful message to the crypto world and that no one is immune from its reach.