Sam Bankman-Fried’s lawyers claim he needs Robinhood shares ‘to pay for his criminal defense’

The authorized staff for former FTX CEO Sam Bankman-Fried has filed a movement in an effort to cease the change’s debtors from controlling greater than $450 million price of shares of Robinhood.

In a Jan. 5 court docket submitting concerning FTX’s chapter case, Bankman-Fried’s legal professionals mentioned FTX debtors had “failed to hold their heavy burden” establishing that that they had a authorized declare to greater than 56 million Robinhood shares. The authorized staff confirmed studies that the US Departure of Justice was within the means of seizing the shares, however mentioned SBF was “compelled to answer” given the stakes surrounding the property.

“Mr. Bankman-Fried has not been discovered criminally or civilly answerable for fraud, and it’s improper for the FTX Debtors to ask the Court docket to easily assume that every little thing Mr. Bankman-Fried ever touched is presumptively fraudulent,” mentioned the submitting, referring to the Robinhood shares. “The FTX Debtors haven’t proven that they’ve an affordable chance of succeeding on the deserves of a fraudulent switch declare.”

The court docket submitting cited U.S. authorities’ felony case towards Bankman-Fried, by which he faces eight felony counts, together with wire fraud and violations of marketing campaign finance legal guidelines. In line with his legal professionals, SBF “requires a few of these funds to pay for his felony protection.” They cited case regulation by which withholding funds may “represent irreparable hurt” to 1’s protection.

Bankman-Fried claimed in December — previous to his arrest within the Bahamas and extradition to the U.S. — that he had solely had $100,000 left in his checking account. Nevertheless, two people whose private info has been redacted from public paperwork have additionally signed on to be sureties for his $250-million bond, alongside along with his dad and mom.

The previous FTX CEO has pleaded not responsible to all expenses, and his trial is predicted to start in October. As a situation of his bail, a federal choose ordered Bankman-Fried to not entry or switch any cryptocurrency or property from FTX or Alameda. On-chain information had recommended funds from Alameda wallets have been being moved amid the court docket instances.

Associated: FTX founder reportedly cashes out $684K after being launched on bail

Although the U.S. Justice Departure might quickly have management of the entire Robinhood shares, FTX, BlockFi and Bankman-Fried have individually beforehand staked claims for various causes. BlockFi filed a go well with in November claiming the shares have been put up as collateral for the agency’s loans to Alameda Analysis, whereas FTX has argued the shares must be managed by the agency whereas the chapter case proceeds.

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