The US Division of Justice has seized greater than 55 million Robinhood shares owned by FTX co-founders Sam Bankman-Fried and Gary Wang valued at over $455 million, in keeping with court docket paperwork filed Friday. The worth is pegged to Friday’s share value of $8.25. The inventory was with a UK-based holding firm. 

Bankman-Fried is preventing to carry on to his shares, arguing that the funds are wanted to pay his authorized protection and saying that he and Wang legitimately purchased them with funds borrowed from FTX hedge firm Alameda Analysis, CoinDesk stated in a separate report.

The US 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 authorized troubles following the collapse of cryptocurrency trade FTX. The lack of a whole lot of hundreds of thousands of {dollars} in FTX buyer funds has damage confidence within the cryptocurrency market. Bankman-Fried pleaded not responsible to fraud prices earlier this month. FTX is now being run by John Ray III, who’s overseeing the difficult chapter course of. He requested a decide final month to freeze FTX inventory, a transfer opposed by Bankman-Fried.

FTX was one of many largest cryptocurrency exchanges on the earth earlier than collapsing late final 12 months. Bankman-Fried and different prime workers had allegedly misused buyer funds in dangerous investments that started to fold because the crypto market noticed a serious slide in 2022.

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