The US government is reportedly in the process of seizing around $465 million worth of Robinhood shares owned by Sam Bankman-Fried, the former CEO of collapsed cryptocurrency exchange FTX.
The seizure is part of the ongoing legal case against Bankman-Fried, who faces charges including wire fraud and money laundering.
SBF purchased a 7.6% stake in financial services company Robinhood in May of last year, with 90% ownership of the 56 million shares.
The shares were later used as collateral to obtain a loan from cryptocurrency lender BlockFi, leading to a dispute over ownership between Bankman-Fried, BlockFi, and FTX creditor Yonathan Ben Shimon.
FTX filed for bankruptcy protection in November, and Bankman-Fried reportedly tried to sell the shares via the Signal application before the filing.
