Reportedly FTX co-founder & former CEO SBF is now under a very big financial crisis, as his wealth has been seized completely.
Sam Bankman-Fried (SBF) is co-founder of the bankrupt Crypto exchange FTX. SBF was the key player who used the FTX customers’ funds unethically and the misuse of users’ funds resulted in the bankruptcy of the exchange. On 11 Nov 2022, FTX filed for bankruptcy. Behind the FTX bankruptcy, SBF claimed that it was the Binance exchange that impacted the exchange’s financial position but in reality Binance did nothing.
On 20 Jan 2023, CNBC reported that in recent weeks US authorities seized more than $6 million from the Silvergate Bank. FTX Digital Markets, a company behind FTX exchange, had three bank accounts on the Silvergate Bank, and the action to seize the funds was taken by the US authorities on 11 Jan.
Another $50 million on Moonstone Bank was seized by the US enforcement agencies, which belonged to the SBF & FTX management.
In addition to these seizures, funds from Binance exchange & Binance’ Amarican subsidiary BinanceUS were also seized. In this way, in recent weeks, US authorities seized three accounts belonging to SBF.
Earlier this, US authorities seized $500 million worth of Robinhood shares. SBF was the main owner of those Robinhood shares but many parties took legal action to gain control of these Robinhood shares, which are equal to 7.8% stakes in the Robinhood company.
So in total seized funds are close to $697 million and it will go to the FTX exchange creditors, who lost funds on the FTX exchange but it will take time in years.
Around a week ago, SBF himself said that FTX has many billion dollar funds, and also he is open to using all of his shares for FTX customers.
“FTX International has many billions of dollars of assets, and I am dedicating nearly all of my assets to customers.”