• Federal prosecutors seized almost $700 million in assets and cash connected to Sam Bankman-Fried, primarily Robinhood shares.
• The seized accounts were in Silvergate Bank, under FTX Digital Markets, the Bahamian subsidiary of the exchange, with over $6 million.
• SBF has denied any misappropriation of customer assets.
In November 2020, the entire crypto industry tumbled after FTX, a crypto exchange founded by Sam Bankman-Fried (SBF), filed for bankruptcy. Since then, other exchanges associated with FTX and funds on the platforms have gone down, including Alameda Research and BlockFi. This led to the arrest of SBF in the Bahamas and the federal prosecutors seizing almost $700 million of his assets.
The seized assets primarily comprised of Robinhood shares, a 7.6% stake of which was purchased by SBF in May 2022. According to the federal prosecutor, the purchase was made with customer funds. However, SBF has denied any misappropriation of customer assets. The accounts were found in Silvergate Bank, under FTX Digital Markets, the Bahamian subsidiary of the exchange, with over $6 million.
Since his release on a $250 million bond, SBF has lost several professional ties as no firms or individuals want to be associated with him and his ongoing saga. He is still being held accountable for the billions that went down with the exchange, with the federal prosecutors still seizing his assets.
The FTX collapse has had far-reaching consequences, not just for Sam Bankman-Fried, but for the entire crypto industry. It has brought to light the need for more stringent regulations and oversight to ensure that such a catastrophe does not happen again.