Home CryptocurrencyAltcoin SBF will forfeit assets worth $700 million if found guilty of fraud

SBF will forfeit assets worth $700 million if found guilty of fraud

by SuperiorInvest

According to new court filings, disgraced FTX founder Sam Bankman-Fried (SBF) will face forfeiture of roughly $700 million in assets if convicted of fraud.

In a court document filed On January 20, US Federal Attorney Damian Williams outlined that “the government respectfully announces that the assets subject to forfeiture” include a long list of assets across fiat, stocks and cryptocurrencies.

The filing states that most of the property was confiscated by the government between January 4 and January 19, while also seeking to claim “all money and assets” belonging to three separate Binance accounts.

Looking at the list of seized assets, the largest allocations include 55,273,469 shares of Robinhood (HOOD) worth roughly $525.5 million at the time of writing, $94.5 million held in Silvergate Bank, $49.9 million in Farmington State Bank and $20.7 million in ED&F Man Capital Markets. , Inc.

SBF Forfeiture order: court hearing officer

The government has filed a forfeiture order in this case because it claims the assets were obtained illegally using client deposits.

While members of the SBF inner circle such as Caroline Ellison and Gary Wang confessed and cooperated with prosecutors over their role in the FTX collapsehas the man himself he pleaded not guilty all eight charges brought against him.

Related: FTX Bankruptcy Lawyer: Debtors Face ‘Twitter Attack’ by Sam Bankman-Fried

FTX lured African investors with inflation hedge marketing

In other FTX news, January 18 message of the Wall Street Journal (WSJ) highlighted a poorly dated marketing piece that the exchange issued in Africa not too long before it went bankrupt in November.

The campaign in question promoted USD-pegged stablecoins as safer investments than inflation-related local currencies while touting the potential to earn 8% per year through staking reward programs.

While these inflationary sentiments may be generally true given that African currencies such as the Nigerian naira and Ghanaian cedi have fallen sharply against the USD, any African FTX customer who is convinced by the marketing obviously lost their funds when the firm went bankrupt.

Related: According to observers, the FTX reboot could slow down due to long-term eroded user confidence

Former FTX head of education for Africa, Pius Okedinachi, told the WSJ that around this time, the exchange oversaw around $500 million in monthly trading volume in Africa, with most of the volume coming from Nigeria.

Notably, just eight days before FTX filed for bankruptcy, the SBF also promoted FTX’s services for West Africa, announcing in a tweet on November 3 that the exchange had begun accepting deposits in West African CFA francs.

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