The authorized workforce for former FTX CEO Sam Bankman-Fried has filed a movement in an effort to cease the trade’s debtors from controlling greater than $450 million value of shares of Robinhood.
In a Jan. 5 court docket submitting concerning FTX’s chapter case, Bankman-Fried’s attorneys mentioned FTX debtors had “failed to hold their heavy burden” establishing that they’d a authorized declare to greater than 56 million Robinhood shares. The authorized workforce confirmed reviews that the US Departure of Justice was within the means of seizing the shares, however mentioned SBF was “compelled to answer” given the stakes surrounding the property.
“Mr. Bankman-Fried has not been discovered criminally or civilly accountable for fraud, and it’s improper for the FTX Debtors to ask the Court docket to easily assume that every thing Mr. Bankman-Fried ever touched is presumptively fraudulent,” mentioned the submitting, referring to the Robinhood shares. “The FTX Debtors haven’t proven that they’ve an inexpensive probability of succeeding on the deserves of a fraudulent switch declare.”
The court docket submitting cited U.S. authorities’ prison case in opposition to Bankman-Fried, through which he faces eight prison counts, together with wire fraud and violations of marketing campaign finance legal guidelines. In keeping with his attorneys, SBF “requires a few of these funds to pay for his prison protection.” They cited case legislation through which withholding funds may “represent irreparable hurt” to at least one’s protection.
Bankman-Fried claimed in December — previous to his arrest within the Bahamas and extradition to the U.S. — that he had solely had $100,000 left in his checking account. Nevertheless, two people whose private data has been redacted from public paperwork have additionally signed on to be sureties for his $250-million bond, alongside together with his dad and mom.
The previous FTX CEO has pleaded not responsible to all fees, and his trial is anticipated to start in October. As a situation of his bail, a federal decide ordered Bankman-Fried to not entry or switch any cryptocurrency or property from FTX or Alameda. On-chain knowledge had advised funds from Alameda wallets had been being moved amid the court docket circumstances.
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Although the U.S. Justice Departure might quickly have management of the entire Robinhood shares, FTX, BlockFi and Bankman-Fried have individually beforehand staked claims for various causes. BlockFi filed a go well with in November claiming the shares had been put up as collateral for the agency’s loans to Alameda Analysis, whereas FTX has argued the shares must be managed by the agency whereas the chapter case proceeds.