- Roughly $50 million was seized from Bankman-Fried’s Farmington State Checking account.
- The financial institution was the US’s Twenty sixth-smallest out of round 4,800, earlier than Bankman-Fried had invested in it.
- Alameda Analysis, Bankman’s agency, took a stake within the financial institution and rebranded it “Moonstone”.
Based on a court docket submitting printed on Friday, public prosecutors seized $49,999,500 from Sam Bankman-Fried, the defamed CEO of FTX, on January 4, 2023, in an effort to forfeit almost $700 million in property.
The quantity was taken from an account created within the mum or dad firm of Farmington State Financial institution, Washington. FTX had invested $11.5 million in March final 12 months, by means of a subsidiary, doing enterprise below the title Alameda Analysis, on this state checking account which had raised loads of questions on the time.
Earlier than the time of Bankman-Fried’s funding, the financial institution was little recognized and had been the Twenty sixth-smallest financial institution out of round 4,800 banks within the US, with solely three staff. As per a New York Occasions report from November, the financial institution specialised in agricultural loans to farmers and didn’t supply on-line banking or bank cards initially.
After Bankman-Fried took a stake within the financial institution and rebranded it as “Moonstone” the financial institution had grown to a internet value twice to what it initially was. Listed as “Moonstone On-line” till just lately, the financial institution didn’t declare any direct point out of cryptocurrencies. It mentioned it had 32 staff and a $115 million valuation” in line with different related expertise banks and trust-banks startups.”
Federal prosecutors allege that he used FTX clients’ cash to construct Alameda. The court docket report additionally reveals that they’ve seized simply over $100 million in an account with Silvergate Capital and $21 million with the brokerage agency ED&F Man Capital Markets.
Bankman-Fried additionally had 55 million shares of Robinhood property seized, value $526 million at Friday’s closing bell, and is being investigated for crypto and money held in three Binance accounts.
The prosecutors are working to trace down property held by Bankman-Fried, who pleaded not responsible to eight fees of fraud earlier this month and is scheduled to face trial in October.