The US government is reportedly in the process of seizing or has already seized 56 million shares of Robinhood, worth around $465 million, owned by Sam Bankman-Fried, the former CEO of FTX.
The seizure is part of the legal case against Bankman-Fried, who faces charges including wire fraud and money laundering.
Bankman-Fried purchased a 7.6% stake in Robinhood in May 2021, with 90% of the 56 million shares being owned by him and the remaining 10% by FTX co-founder Zixiao (Gary) Wang.
The shares were later used as collateral for a loan from cryptocurrency lender BlockFi and became the subject of a dispute between SBF, BlockFi, and FTX creditor Yonathan Ben Shimon over ownership.
The shares were frozen by broker ED&F Man Capital Markets in mid-November after FTX and Alameda Research filed for bankruptcy protection.