(Bloomberg) -- The US government has seized — or is in the process of seizing — hundreds of millions of dollars worth of Robinhood Markets Inc. shares as part of the fraud case against Sam Bankman-Fried, founder of the failed crypto firm FTX, lawyers said in court Wednesday.
The government also is taking control of assets in bank accounts that were part of a bankruptcy case involving one unit of the FTX empire in the Bahamas, said James Bromley, a lawyer leading the main FTX insolvency proceeding in the US.
The seizures began as part of the fraud case against Bankman-Fried and other top FTX officials.
The shares, now worth more than $460 million, have been claimed by various creditors of FTX, who filed court cases to try to control of them. A court hearing will eventually be held to determine what happens to the shares and the assets seized from the bank accounts, Seth B. Shapiro, a lawyer with U.S. Department of Justice said during a court hearing held by video in Wilmington, Delaware.
Bankman-Fried was extradited from the Bahamas last month to face fraud charges in the US.
The bankruptcy case is FTX Trading Ltd., 22-11068, U.S. Bankruptcy Court for the District of Delaware.
--With assistance from .
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.