SBF to forfeit $700M price of property if discovered responsible of fraud

Based on new courtroom filings, disgraced FTX founder Sam Bankman-Fried (SBF) might be topic to the forfeiture of roughly $700 million price of property if he have been to be discovered responsible of fraud.

In a courtroom doc filed on Jan 20, U.S. federal prosecutor Damian Williams outlined that the “authorities respectfully provides discover that the property topic to forfeiture” covers a protracted record of property throughout fiat, shares and crypto.

The filings state that a lot of the property have been seized by the federal government between Jan.4 and Jan. 19, whereas it’s also trying to lay declare to “all monies and property” belonging to 3 separate Binance accounts.

Wanting on the record of seized property, the most important allocations embody 55,273,469 Robinhood (HOOD) shares price roughly $525.5 million on the time of writing, $94.5 million held at Silvergate Financial institution, $49.9 million held at Farmington State Financial institution and $20.7 million at ED&F Man Capital Markets, Inc.

SBF Forfeiture order: Courtroom Listener

The federal government has submitted a forfeiture order on this occasion because it alleges that these property have been obtained unlawfully through using buyer deposits.

Whereas members of SBF’s inside circle similar to Caroline Ellison and Gary Wang have fessed up and cooperated with prosecutors over their roles in FTX’s collapse, the person himself has pleaded not responsible to all eight felony costs laid towards him.

Associated: FTX chapter lawyer: debtors face ‘assault by Twitter’ stemming from Sam Bankman-Fried

FTX roped in African buyers with inflation hedge advertising

In different FTX-related information, a Jan. 18 report from the Wall Avenue Journal (WSJ) highlighted poorly aged advertising that the change launched in Africa not too lengthy earlier than it went bankrupt in November.

The marketing campaign in query touted USD-pegged stablecoins as safer investments than native currencies regarding inflation, whereas additionally selling the potential to earn 8% yearly through staking rewards packages.

Whereas these inflation sentiments might typically be true on condition that African currencies such because the Nigerian naira and Ghanaian cedi have plummeted towards the USD, any African FTX buyer persuaded by the advertising in fact went on misplaced funds when the agency went bankrupt.

Associated: FTX reboot may falter attributable to long-broken consumer belief, say observers

Former FTX training lead for Africa Pius Okedinachi advised the WSJ that round that the change oversaw round $500 million price of month-to-month buying and selling quantity in Africa, with a lot of the quantity coming from Nigeria.

Notably, simply eight days earlier than FTX filed for chapter, SBF additionally promoted FTX’s providers to West Africa, saying in a Nov. 3 tweet that the change had began accepting deposits in West African CFA francs.