FTX founder Sam Bankman-Fried loses access to $450 million as US DOJ sizes 55 million Robinhood shares
- FTX co-founders Sam Bankman-Fried and Gary Wang owned the shares but are now being considered property involved in wire fraud.
- Earlier last week, Sam Bankman-Fried’s lawyers argued that the shares were not part of the bankruptcy estate and that FTX’s ex-CEO needed it to pay legal bills.
- FTT price invalidated its 13% recovery earlier last week but is preparing to climb back and claim $1 as a support floor.
FTX saga is reaching a consensus with its rapidly advancing bankruptcy proceedings across all fronts. The next step in the process is the recovery of losses for FTX creditors and Sam-Bankman Fried’s court trial, which took an unfavorable turn today,
FTX ex-CEO’s money snatched by DOJ
FTX co-founders Sam Bankman-Fried and Gary Wang were persistent in claiming entitlement for 55 million Robinhood shares that are worth over $450 million. The struggle for ownership which has been ongoing for weeks now, came to an end on Monday as the Department of Justice announced the seizure of the assets.
The process began last week when reports of the Justice Department looking to seize the shares came to light. Sam Bankman-Fried was notified of the same, and consequently, the ex-CEO filed a plea claiming ownership.
Bankman-Fried’s lawyers argued that the Robinhood shares could not be seized as they were not a part of the cryptocurrency exchange’s bankruptcy estate. As per the filing, the shares were owned by Emergent Fidelity technologies which the FTX founder had a 90% stake.
However, the plea has seemingly been in vain. As per the Justice Department, due to the charges against Sam Bankman-Fried, the Robinhood shares have become a part of money laundering and wire fraud violation, resulting in its seizure.
FTT price skyrockets to $1
FTT price painted green during the trading hours on Monday as the cryptocurrency jumped to trade at $1.003 at the time of writing. Marking a 10% rise, the altcoin noted an almost 25% spike in price in the intra-day trading.
In order for FTT price to turn $1 into a support floor, the cryptocurrency will have to maintain this heading over the next few hours and attempt to close above $1.032. This level was tested last week when the altcoin rallied by 13%, which was invalidated soon after.
FTT/USD 4-hour chart
However, persisting fear in the market does present some threat to this rise which could result in FTT price losing the $0.965 support. Slipping further would lead to the altcoin tagging $0.939 and $0.903, and a daily candlestick close below the latter level would invalidate the bullish thesis, pushing the price to $0.880.