May 2022, then-ceo sam bankman-fried and ftx cofounder gary wang formed a holding company called emergent to purchase shares in the publicly traded robinhood platform. u.s. justice department officials took custody of $450 million in robinhood shares from ftx, and bankman-fried, wang, and former ceo of alameda research caroline ellison are now facing a litany of charges, including bank and wire fraud, money laundering, and conspiracy.
Seizure of the robinhood shares took place in delaware bankruptcy court in may 2022. in december, bankman-fried and wang said they used funds taken in loans totaling $546 million from alameda research to buy the shares. blockfi has also asserted a claim to the shares, as bankman-fried had supposedly promised them to the now-bankrupt company.
U.s. justice department alleges that bankman-fried and wang used fraudulent means to acquire the robinhood shares. the trio allegedly took out loans from alameda research and used the funds to purchase the shares, which they then attempted to hide. the next court hearing is scheduled for january 20, 2023, and if found guilty on all charges, the trio could spend the rest of their lives in federal prison.