• Thu. Feb 22nd, 2024

Sam Bankman Losing Robinhood Shares, DOJ Removes Seven Expert Witnesses

Maria Bartiromo

ByMaria Bartiromo

Sep 5, 2023
regulation-cryptocurrency-today

Sam Bankman-Fried (SBF), a cryptocurrency tycoon and CEO of the defunct FTX Exchange, is now engaged in an ongoing legal struggle that has recently taken a dramatic turn as recent court filings suggest he is losing control of his Robinhood shares. This adds yet another level of complication to his case.

The new information comes amid a rush of case-related activity, including the Department of Justice’s (DOJ) request for intervention and the debate over expert witnesses. This most recent memorandum, which was made public during the pretrial proceedings, reveals the complex nature of financial transactions involving the assets of SBF.

Court documents state that SBF is losing control of his Robinhood shares due to legal issues connected to his participation in the troubled FTX Exchange. Additionally, according to the filings, SBF sent his business partner Gary Wang instructions to “stall the FTX Debtors seeking to recover assets on behalf of the U.S. bankruptcy.”

The situation worsened on August 29 when the United States DOJ submitted paperwork asking to remove all seven expert witnesses who would testify for Bankman-Fried in his impending trial, which is set to begin in October. A recent report from CoinGeek’s Steven Stradbrooke explained that this information reveals the level of SBF’s involvement in managing his assets despite growing legal challenges.

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Trail Rescheduled 2024 Uncovered, Judge Calls “Document Dump” Seriously Exaggerated

SBF’s selection of expert witnesses was viewed as a calculated ploy to strengthen his defense. This aligns with speculations that his trial, initially set for October, may be moved to March, 2024. This potential hold-up might greatly impact SBF’s defense plan and how the case turns out.

Inner City Press reported that Judge Lewis A. Kaplan described the defense’s accusations regarding the document dump as “seriously exaggerated.” This censure underscores the conflict between the court and SBF’s defense team throughout this prominent case.

SBF was sent to New York’s Metropolitan Detention Center (MDC) on August 11 after Judge Kaplan became furious at his alleged disregard for the terms of his bail, which further complicated the situation. This action aroused concerns about the case’s overall strategy and indicated that the legal conflict had escalated.

Sam Bankman’s Robinhood Ownership Questioned, SPA To Repurchase Robinhood Shares

SBF’s ownership of Robinhood has drawn concern from investors and authorities due to the company’s previous history of scandal. The future of SBF and the broader consequences for the cryptocurrency sector are still unknown as the legal proceedings develop. The financial world will pay close attention to the judicial processes in the coming months as they continue to determine Sam Bankman-Fried’s destiny and the direction of United States cryptocurrency legislation.

News came in on Friday, September 1, that Robinhood has reached a deal with a United States company, Marshalls Service, to purchase 55.3 million of Robinhood shares. The shares were formerly owned by Emergent Fidelity Technologies (EFT), a company managed by Sam Bankman-Fried and Zixiao Wang, the FTX co-founder.

On Friday, Share Purchase Agreement (SPA) announced that they have gotten the court’s approval since August 28 to reacquire the said shares. On the other hand, Robinhood was reportedly saying in February that the deal was worth $605.7 million, amounting to  $11 per share, a 5-day average which started from August 13, the same day the deal took off.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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