US Prosecutors Seize $700 Million in Assets Linked to Collapsed Crypto Exchange FTX and Founder Sam Bankman-Fried

1: u.s. prosecutors have seized nearly $700 million worth of assets owned by collapsed crypto exchange ftx and tied to its founder and former ceo sam bankman-fried. bankman-fried and gary wang created a shell company, emergent fidelity technologies, with funds loaned by ftx sister company alameda research.
paragraph 2: federal authorities in the southern district of new york seized just over $698 million worth of assets linked to bankman-fried on january 4, 2021. the bulk of the value comes from a stack of shares that bankman-fried purchased in robinhood, the stock and crypto trading app, allegedly using stolen ftx customer funds. between january 11 and 19, authorities seized just over $100 million of ftx’s funds held in silvergate bank.
paragraph 3: ftx customer funds were reportedly used to plug a trading hole in alameda’s balance sheet last summer, ahead of the exchange’s eventual collapse. bankman-fried now faces various charges from the u.s. department of justice, securities and exchange commission (sec), and commodity futures trading commission (cftc) related to his actions at the companies. the ftx restructuring team has separately recovered more than $5 billion worth of company assets between cryptocurrency, cash, and liquid investments in securities.

By Evey Lovelace

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