SBF's Robinhood equities seized by federal government, orders seizure of FTX's funds in Silvergate

Table of Contents

Seizure of Robinhood Equity

The Wall Street Journal reported that Justice Department official Seth Shapiro stated during a bankruptcy hearing on 1/3 that federal authorities are taking action to seize the Robinhood equity previously claimed by SBF.

Prior to this, this asset was caught in a three-way dispute, with BlockFi and FTX both vying for the 7.6% Robinhood equity claimed by SBF, which amounts to around 56 million shares valued at approximately $450 million.

Seizure of Silvergate Fiat

Reports also indicate that a federal judge has ordered the seizure of $93 million held by FTX Digital Market in Silvergate accounts.

In addition, a temporary liquidator appointed by the Supreme Court of the Bahamas has been attempting to recover the remaining funds in FTX's bank accounts, requesting the transfer of the $93 million held in Silvergate and another $50 million in a different crypto bank.

Silvergate has stated that the Bahamian liquidator should seek access through agreement with all parties, rather than attempting to gain access through the country's Supreme Court.

Prior to this, several senators led by Elizabeth Warren had written to Alan Lane, CEO of the crypto bank Silvergate, after FTX's bankruptcy, requesting information on fund transfers and urging the Financial Crimes Enforcement Network (FinCEN) to issue guidance on digital assets to strengthen U.S. anti-money laundering rules.