Get All Access for $5/mo

$465 Million of Robinhood Shares Linked to FTX's Sam Bankman-Fried Are in Question — What Now? Bankman-Fried and FTX co-founder Gary Wang borrowed more than half a billion dollars to purchase a nearly 7.6% stake in the stock-trading app.

By Amanda Breen Edited by Jessica Thomas

SOPA Images | Getty Images

The saga of Sam Bankman-Fried's collapsed FTX currency exchange continues.

U.S. prosecutors are in the process of seizing 56 million Robinhood shares linked to Bankman-Fried, U.S. attorney Sam Shapiro informed a judge overseeing the FTX bankruptcy on Wednesday, per Reuters.

Related: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

The Department of Justice claimed the shares, worth approximately $465 million, weren't the property of a bankruptcy estate. According to Shapiro, opposing claims to the shares could be dealt with via a forfeiture proceeding.

Bankman-Fried and FTX co-founder Gary Wang borrowed more than $546 million from hedge fund Alameda Research to purchase a nearly 7.6% stake in Robinhood, CNN reported.

Along with Bankman-Fried, bankrupt crypto firm BlockFi, FTX and liquidators in Antigua have all claimed ownership of the stock-trading app's shares.

Additionally, Shapiro said that prosecutors had seized U.S. bank accounts tied to FTX's Bahamas-based business FTX Digital Markets, and court records reveal that accounts at Silvergate Bank and Farmington State Bank held roughly $143 million.

But an attorney for FTX said that none of the assets in question are directly controlled by any FTX entities at this time.

Related: Martin Shkreli Offers Prison Tips to Sam Bankman-Fried

Bankman-Fried pleaded not guilty to counts of wire fraud and conspiracy, though he admitted to risk-management failures at FTX.

Amanda Breen

Entrepreneur Staff

Senior Features Writer

Amanda Breen is a senior features writer at She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business News

Sony Pictures Entertainment Purchases Struggling, Cult-Favorite Movie Theater Chain

Alamo Drafthouse originally emerged from bankruptcy in June 2021.


Are Your Business's Local Listings Accurate and Up-to-Date? Here Are the Consequences You Could Face If Not.

Why accurate local listings are crucial for business success — and how to avoid the pitfalls of outdated information.

Growing a Business

He Immigrated to the U.S. and Got a Job at McDonald's — Then His Aversion to Being 'Too Comfortable' Led to a Fast-Growing Company That's Hard to Miss

Voyo Popovic launched his moving and storage company in 2018 — and he's been innovating in the industry ever since.

Money & Finance

Day Traders Often Ignore This One Topic At Their Peril

Boring things — like taxes — can sometimes be highly profitable.


Want to Be More Productive Than Ever? Treat Your Personal Life Like a Work Project.

It pays to emphasize efficiency and efficacy when managing personal time.