Sharing Knowledge in Smallcaps

[BullNBear52]

Try following the money.

I think the judge got this one wrong. SBF borrowed money from Alameda but Alameda was tapping FTX customer deposits surreptitiously. (granted the latter money movement is to be determined whether it was legal or not.) The forensic accountants are going to need more T accounts. lol.

U.S. DOJ to seize $465 million of Robinhood shares tied to Bankman-Fried
By Tom Hals and Dietrich Knauth

Jan 4 (Reuters) - U.S. prosecutors are in the process of seizing shares of Robinhood Markets Inc (HOOD.O) tied to Sam Bankman-Fried, who has been charged with fraud in the collapse of the FTX cryptocurrency exchange, a U.S. attorney told a judge on Wednesday.

The Department of Justice did not believe the 56 million shares of Robinhood, worth about $465 million, were property of a bankruptcy estate, U.S. attorney Seth Shapiro told U.S. Bankruptcy Judge John Dorsey, who is overseeing the FTX bankruptcy.

Shapiro said that competing claims to shares of the stock-trading app could be worked out in a forfeiture proceeding. Bankrupt crypto firm BlockFi, FTX and liquidators in Antigua have all laid claim to the Robinhood stock, along with Bankman-Fried.

Prosecutors have accused Bankman-Fried of engaging in a years-long "fraud of epic proportions" that cost investors, customers and lenders potentially billions of dollars by using customer deposits to support his Alameda Research hedge fund.

Bankman-Fried pleaded not guilty to counts of wire fraud and conspiracy. He has acknowledged risk-management failures at FTX, but has said he did not believe he was criminally liable.

Bankman-Fried purchased about 7.42% of Robinhood's stock through Emergent Fidelity Technologies Ltd, using funds borrowed from Alameda Research, according to an affidavit he filed in December in an Antigua court.

Bankman-Fried said he owned 90% of Emergent and Gary Wang, another former FTX executive, owned 10%. Wang has pleaded guilty to fraud charges from the FTX collapse and is cooperating with prosecutors.

https://www.reuters.com/business/finance/us-doj-process-seizing-robinhood-shares-tied-bankman-fried-2023-01-04/