U.S. DOJ begins process to seize Robinhood shares that are tied to Bankman-Fried

WILMINGTON, Del. (Reuters) – U.S. prosecutors are attempting to seize shares of Robinhood Markets Inc. These shares were allegedly owned and controlled by Sam Bankman Fried. Sam Bankman-Fried was accused of fraud in the collapse FTX cryptocurrency exchange.

A U.S. bankruptcy judge was informed by the prosecution that they are currently attempting to seize shares of Robinhood, a popular securities trading app. The shares were pledged by Alameda Research as loan collateral. This crypto hedge fund was founded by Bankman-Fried.

Alameda and its affiliate FTX filed for bankruptcy in the United States in November after customers rushed withdraw funds.

Bankman-Fried pleaded not guilty in fraud involving the loss of potentially billions by FTX customers.

According to Eikon data Bankman-Fried owned 56 million shares, or 7.42%, of Robinhood stock through Emergent Fidelity Technologies Ltd.

(Reporting by Tom Hals, Wilmington, Delaware; Editing By Sandra Maler