The authorized staff for former FTX CEO Sam Bankman-Fried has filed a movement in an effort to cease the alternate’s debtors from controlling greater than $450 million value of shares of Robinhood.
In a Jan. 5 courtroom submitting relating to FTX’s chapter case, Bankman-Fried’s legal professionals mentioned FTX debtors had “failed to hold their heavy burden” establishing that that they had a authorized declare to greater than 56 million Robinhood shares. The authorized staff confirmed stories that the US Departure of Justice was within the means of seizing the shares, however mentioned SBF was “compelled to answer” given the stakes surrounding the belongings.
“Mr. Bankman-Fried has not been discovered criminally or civilly responsible for fraud, and it’s improper for the FTX Debtors to ask the Courtroom to easily assume that the whole lot Mr. Bankman-Fried ever touched is presumptively fraudulent,” mentioned the submitting, referring to the Robinhood shares. “The FTX Debtors haven’t proven that they’ve an inexpensive probability of succeeding on the deserves of a fraudulent switch declare.”
The courtroom submitting cited U.S. authorities’ felony case towards Bankman-Fried, wherein he faces eight felony counts, together with wire fraud and violations of marketing campaign finance legal guidelines. In keeping with his legal professionals, SBF “requires a few of these funds to pay for his felony protection.” They cited case legislation wherein withholding funds might “represent irreparable hurt” to at least one’s protection.
Bankman-Fried claimed in December — previous to his arrest within the Bahamas and extradition to the U.S. — that he had solely had $100,000 left in his checking account. Nevertheless, two people whose private info has been redacted from public paperwork have additionally signed on to be sureties for his $250-million bond, alongside along with his dad and mom.
The previous FTX CEO has pleaded not responsible to all expenses, and his trial is anticipated to start in October. As a situation of his bail, a federal decide ordered Bankman-Fried to not entry or switch any cryptocurrency or belongings from FTX or Alameda. On-chain information had prompt funds from Alameda wallets have been being moved amid the courtroom instances.
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Although the U.S. Justice Departure could quickly have management of the entire Robinhood shares, FTX, BlockFi and Bankman-Fried have individually beforehand staked claims for various causes. BlockFi filed a go well with in November claiming the shares have been put up as collateral for the agency’s loans to Alameda Analysis, whereas FTX has argued the shares must be managed by the agency whereas the chapter case proceeds.
