The federal government seized $700 million from FTX’s Sam Bankman-Fried. If convicted of fraud, he could lose everything

Sam Bankman-Fried’s assets worth nearly $700 million could be subject to forfeiture if he is found guilty of fraud, according to federal prosecutors leading the case against the FTX founder.

In a court filing on Friday, the US Attorney for the Southern District of New York, Damian Williams, outlined 10 accounts, with a mix of shares, cash and cryptocurrency subject to forfeiture.

The asset pool includes about 55 million shares of Bankman-Fried held by Robinhood Markets Inc. At Friday’s closing price the shares were worth $526 million. The Justice Department previously announced that it had seized the shares, which were purchased with a $456 million loan from Alameda Research, FTX’s sister trading house.

The property subject to forfeiture also includes more than $20 million held in an account in the name of Emergent Fidelity Technologies, the holding company used to purchase the shares, more than $171 million in US currency in accounts under in the name FTX Digital Markets and holdings in three Binance accounts. The accounts containing the money were seized by the government between January 4 and January 19, according to the filing.

Prosecutors use forfeiture orders as a way to recover assets acquired by defendants for ill-gotten gains. In the case of Bernie Madoff, a judge ordered the deceased Ponzi schemer to forfeit more than $170 billion and his wife, $80 million. Ross Ulbricht, the founder of the dark web bazaar Silk Road, was ordered to hand over about $28 million worth of Bitcoin as part of a 2014 forfeiture order.

Bankman-Fried has pleaded not guilty to an eight-count indictment, including campaign fraud violations. He is accused of using FTX customer funds to support the Alameda business, pay personal expenses and real estate. The 30-year-old is currently out on bail after signing a $250 million package that effectively puts him under house arrest at his parents’ house in California.

FTX’s new management, including restructuring expert John J. Ray III, managed to track down billions of dollars in assets linked to the crypto empire as part of the bankruptcy proceedings.

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