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Feds Grasp Over $455M in Inventory Owned by way of Embattled FTX Co-Founders

America Division of Justice has seized greater than 55 million Robinhood stocks owned by way of FTX co-founders Sam Bankman-Fried and Gary Wang valued at over $455 million, in line with court docket paperwork filed Friday. The price is pegged to Friday’s percentage value of $8.25. The inventory used to be with a UK-based conserving corporate. 

Bankman-Fried is combating to carry directly to his stocks, arguing that the finances are had to pay his felony protection and pronouncing that he and Wang legitimately purchased them with finances borrowed from FTX hedge corporate Alameda Analysis, CoinDesk stated in a separate record.

America Division of Justice and Robinhood did not instantly reply to requests for remark.

Information of the DOJ’s seizure comes as Bankman-Fried faces mounting felony troubles following the cave in of cryptocurrency alternate FTX. The lack of loads of tens of millions of bucks in FTX buyer finances has harm self belief within the cryptocurrency marketplace. Bankman-Fried pleaded no longer accountable to fraud fees previous this month. FTX is now being run by way of John Ray III, who is overseeing the sophisticated chapter procedure. He requested a pass judgement on ultimate month to freeze FTX inventory, a transfer hostile by way of Bankman-Fried.

FTX used to be one of the vital greatest cryptocurrency exchanges on the earth earlier than collapsing overdue ultimate 12 months. Bankman-Fried and different best workers had allegedly misused buyer finances in dangerous investments that started to fold because the crypto marketplace noticed a significant slide in 2022.

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