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image source: Reuters

Federal authorities confiscated approximately $700 million in assets belonging to disgraced FTX founder Sam Bankman-Fried, including three accounts at Silvergate Bank that held US dollars.

According to a filing in court from FridayFederal prosecutors seized approximately $525 million in Robinhood stock, $94.5 million in cash from a Silvergate Bank account, more than $7 million from other Silvergate accounts, nearly $50 million from a Moonstone Bank account and assets in three Binance accounts.

As noted, the US Department of Justice revealed the seizure of 56 million shares of Robinhood earlier this month. The shares are owned by Sam Bankman-Fried and FTX co-founder Gary Wang through a holding company called Emergent Fidelity Technologies and were purchased with a loan from his own hedge fund, Alameda Research.

The shares have been the subject of litigation between multiple parties, with a total of four entities claiming the shares. Bankruptcy BlockFi crypto lendera creditor to FTX, new FTX management trying to recover funds for bankrupt platform investors and clients, and the US government wanted to keep their hands on the stock.

Sam Bankman-Fried himself also had rights to the shares. In one filing, lawyers for SBF argued that the shares are held by a holding company that is not an entity related to FTX. They also said the disgraced crypto boss needed money to fund his legal bills.

A further $101.5 million of the seized assets were held in Silvergate Bank accounts in the name of FTX Digital Markets, a Bahamian subsidiary. These assets were taken over by the government “on or about” January 11, the crypto bank said earlier this month,

Silvergate also revealed that it suffered a bank run following the collapse of cryptocurrency exchange FTX, which forced the company to sell assets at a steep loss in order to honor $8.1 billion in customer withdrawals. The crypto bank suffered a loss of $718 million on the sale.

Additionally, the DOJ seized nearly $50 million from an FTX Digital Markets account at Moonstone Bank, a digital bank linked to FTX management. Just yesterday, the bank announcement he is leaving the crypto space and will refocus on the role of “community bank” citing recent industry developments.

Finally, the DOJ seized an undisclosed amount of assets held in a Binance account and two Binance.US account numbers.

US prosecutors have charged SBF with eight criminal charges, including wire fraud and conspiracy to misuse client funds. The crypto boss has pleaded not guilty at all costs.



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