The DoJ believes SBF engaged in a year-long fraud enterprise that price traders and clients billions of {dollars}.
The United States Department of Justice (DOJ) is, ostensibly, making ready to seize and liquidate Sam Bankman-Fried’s (SBF) 56 million Robinhood Markets Inc (NASDAQ: HOOD) shares valued at roughly $465 million. Notably, SBF bought roughly 7.42 p.c of HOOD inventory through Emergent Fidelity Technologies Ltd, utilizing funds borrowed from Alameda Research, in accordance to an affidavit he filed in December in an Antigua court docket.
According to media outlet Reuters, US legal professional Seth Shapiro advised US Bankruptcy Judge John Dorsey – who’s overseeing the FTX chapter – that SBF’s stake in Robinhood are proceeds of FTX. As such, the United States legal professional thinks the $465 million ought to be seized and shared between FTX stakeholders together with BlockFi.
SBF pleaded not responsible to fraud prices filed towards him in a United State court docket and the listening to has been set for October.
However, consultants say SBF will likely be combating a steep authorized battle after his shut FTX and Alameda counterparts Caroline Ellison and Gary Wang pleaded responsible to fraud prices.
Moreover, Ellison and Wang have agreed to absolutely cooperate with authorities prosecutors towards SBF.
“It’s going to be a very tough task for Bankman-Fried to ultimately prevail at trial. And while Bankman-Fried could be hoping for leniency, he may end up with a more severe sentence than he originally bargained for,” Mark A. Kasten, a associate at legislation agency Buchanan Ingersoll & Rooney PC Counsel, famous.
SBF Threatens to Pull Down Crypto Market
The cryptocurrency market has taken a nosedive for the reason that collapse of FTX and its native token FTT. With billions of {dollars} vaporized from the FTX implosion, regulators are eager to pounce laborious on predatory crypto initiatives.
The whole business’s credibility is cratering b/c of fraudsters like @SBF_FTX and different unhealthy actors. We have members of Congress speaking about banning crypto w/an SEC Chair prepared to pounce on the great guys whereas conspiring w/the unhealthy guys. Let’s not do that. How a few zoom name?
— John E Deaton (@JohnEDeaton1) January 2, 2023
Several crypto corporations that had been uncovered to FTX and Alameda have since collapsed or are on the verge of submitting for chapter. As such, SBF investigators have an uphill activity to deal with a rogue FTX stability sheet that included FTT as belongings. Furthermore, the DoJ believes SBF engaged in a year-long fraud enterprise that price traders and clients billions of {dollars}.
Following the FTX’s collapse, market strategists are nervous the market might plummet additional in the approaching quarters earlier than rebounding. A protracted crypto winter finally reciprocates to job loss as buying and selling quantity decreases over time. Furthermore, Coinbase warned in its This fall earnings outcomes that crypto buying and selling quantity is predicted to fall additional in 2023. Additionally, SBF had indicated earlier than the FTX collapse that almost all cryptocurrency exchanges are silently struggling to keep liquid.
According to our newest crypto worth oracles, Bitcoin (BTC) is exchanging for round $16,813, up 1.7 p.c in the previous seven days.
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