The arrest of former CEO Sam Bankman-Fried after FTX’s collapse is arguably the largest scandal in the industry’s history. One of the largest financial frauds ever perpetrated has been exposed as a result of the events. Additionally, despite the platform’s best efforts, things continue to remain challenging.
For starters, the Bahamas and FTX U.S. are at odds with one another within the bankruptcy procedures. There is consequently no agreement between the two sides on one of the most important components of the proceedings, and a vital Friday hearing is quickly approaching.
The Bahamas and FTX U.S. reportedly have $3 billion in different recovered assets from the bankruptcy estate. The U.S. arm claims that just $296 million has been recovered, compared to the Bahamian authorities’ allegation of $3.5 billion.
The difference is unusually substantial, and since both parties accuse the other of possible wrongdoing, a resolution isn’t anticipated until Friday. It was also mentioned that Sam Bankman-Fried entered a not-guilty plea during the arraignment session during which the bankruptcy hearings were discussed.
US Authorities To Seize 56M Robinhood Shares Tied To FTX
Local media reported on January 4 that U.S. authorities had informed a judge that they were in the process of seizing assets connected to FTX and its former CEO, Sam Bankman-Fried, including 56 million shares of Robinhood, which were valued at approximately $468 million at the time of the story. The news comes a day after SBF was told by a judge hearing his criminal case not to access or transfer any bitcoin or assets from FTX or Alameda.
Control of the Robinhood shares has been a point of dispute during FTX’s bankruptcy proceedings as numerous investors and creditors seek to be compensated. The assets are subject to claims from FTX creditor Yonathan Ben Shimon, BlockFi, and Bankman-Fried.
On January 3, Bankman-Fried entered a not-guilty plea in federal court to eight charges, including wire fraud, securities fraud, and breaking campaign funding rules. In the past, he has also denied moving money out of Alameda, claiming that after stepping down as CEO in November, he no longer had access to the wallets.
The former FTX CEO has been under house arrest at his parents’ California home since December, but he is permitted to leave the country for authorized purposes, such as to appear in court in New York. Oct. 2 has been established as the day of his trial.