The American authorities have reportedly seized or will soon confiscate 56 million shares of Robinhood tied to the former CEO of FTX – Sam Bankman-Fried (SBF).

The 30-year-old recently sought help from a United States Bankruptcy Court to obtain control of the HOOD stocks. 

SBF Takes Another Punch

According to a Bloomberg coverage, the American government is in the process of seizing around $468 million worth of Robinhood shares owned by Bankman-Fried. The source indicated that the officials might have already completed the seizure.

The operation is part of the massive law case against FTX’s former executive, who faces numerous charges, including wire fraud and money laundering. 

SBF purchased a 7.6 stake in the financial services company in May last year, praising Robinhood as an “attractive investment.” Recent reports hinted that the former crypto mogul borrowed over half a billion dollars from Alameda Research to finance the deal, partnering with FTX Co-Founder – Zixiao (Gary) Wang. SBF gained 90 ownership of the 56 million shares, while Wang had 10.