London Daily

Focus on the big picture.
Friday, Jun 19, 2026

0:00
0:00

U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX

Seizure of funds comes as the prospect of FTX customers recovering billions in assets remains in limbo
Seth Shapiro, a Justice Department official, said at an FTX bankruptcy court hearing Wednesday that the federal government has seized or is in the process of seizing Robinhood shares whose ownership is disputed by FTX and BlockFi, a cryptocurrency lender that collapsed in late November. The Wall Street Journal previously reported that the dispute involves 56 million shares.

“We either believe these assets aren’t property of the bankruptcy estate,” or fall under some bankruptcy code exception, Mr. Shapiro told Judge John Dorsey on Wednesday in the U.S. Bankruptcy Court in Wilmington, Del.

Separately, Katharine Parker, a federal magistrate judge in New York, in December ordered the seizure of money that an FTX unit was keeping in accounts at Silvergate Capital Corp., according to a court filing Wednesday. An earlier court filing put the amount at about $93 million.

The Justice Department has accused FTX co-founder Sam Bankman-Fried of stealing billions of dollars of customer money. The U.S. attorney for the Southern District of New York said Tuesday that his office had formed an FTX task force, and that one of its goals is to trace and recover victim assets.

The Federal Bureau of Investigation has also filed an affidavit with a New York federal court in order to seize FTX funds.

Meanwhile, court-appointed liquidators in the Bahamas have been attempting to recover remaining funds inside bank accounts in the U.S., some of which have been frozen following the crypto exchange’s collapse. However, federal authorities have preempted some of that dispute and seized at least some of the disputed funds as their criminal probe of FTX and Mr. Bankman-Fried has widened.

The federal government’s entrance into a matrix of competing claims for control over FTX assets will likely complicate customers’ ability to recover their money, which has been out of reach since November.

FTX lawyer James Bromley said during Wednesday’s hearing that the seizures were ordered by the court in connection with the criminal case in the Southern District of New York involving Mr. Bankman-Fried. He pleaded not guilty to charges of fraud this week.

“The question as to the ownership of those Robinhood shares was an open question before the seizure took place,” Mr. Bromley said. “We wanted to make sure that it was clear the Robinhood shares that were being seized were being seized from accounts” that aren’t currently under the direct control of the bankrupt FTX.

Silvergate on Wednesday filed a copy of Judge Parker’s warrant that led to the seizure of FTX’s funds at the bank. The bank made the filing to a federal bankruptcy court in Delaware handling the insolvency of FTX Digital Markets, a Bahamas-based subsidiary of FTX that housed the company’s international exchange.

Bahamian regulators placed FTX Digital Markets into liquidation in November, just before FTX’s new chief executive, John J. Ray III, placed about 100 FTX subsidiaries under chapter 11 protection in the U.S.

FTX co-founder Sam Bankman-Fried has pleaded not guilty to criminal charges.Photo: Stephanie Keith/Bloomberg News
FTX Digital Markets’ liquidators, appointed by the Supreme Court of the Bahamas, had previously asked to transfer $93 million out of Silvergate and another roughly $50 million held at Moonstone Bank in Washington state into accounts they control.

“It would be irresponsible to leave significant U.S. assets (more than $140 million) in the hands of two small crypto banks,” the liquidators wrote last month. They pointed to Silvergate being the subject of at least four class-action lawsuits brought by FTX creditors and Silvergate shareholders since November.

Silvergate said that the liquidators could have asked for consensual access instead of attempting to obtain it through a court order. “Silvergate, having repeatedly confirmed that the accounts had been frozen, vigorously disputes the implications that the funds are, in any way, at risk of loss,” the bank wrote.

Authorities’ seizure of FTX funds raises questions about how, or if, customers can expect to recover their money locked on the crypto platform. Mr. Ray told Congress in December that FTX’s U.S. entity isn’t solvent, putting into doubt whether American customers can expect to see their funds returned. He also noted that FTX’s international customers’ funds were commingled with accounts belonging to Alameda Research, whose own losses on bad crypto bets total in the billions, he said.

“We believe we have rights with respect to those assets that can be dealt with later,” FTX’s Mr. Bromley said of the seized assets. “We are in alignment at the present time with the U.S. government and the law enforcement officials in taking these steps.”

Mr. Shapiro of the Justice Department said the government would file a notice of seizure so the court is aware of what has been seized by the U.S. government.
Newsletter

Related Articles

0:00
0:00
Close
Payment Fraud Losses Reach £1.28 Billion and Raise National Security Concerns
Lending to Small Businesses Climbs to Highest Level Since Late 2024
Middle East Conflict Clouds UK Economic Recovery Despite Strong First-Quarter Growth
Bank of England Moves to Simplify Capital Rules for Smaller Lenders
UK Government Fast-Tracks National Security and Cyber Resilience Legislation
Ofcom Investigates Telegram Over Alleged Role in Organising Arson Attacks
MPs Press Fujitsu to Speed Compensation for Post Office Horizon Victims
Bank of England Delays Final Basel III Implementation Changes to Support UK Banking Competitiveness
Pound Falls as Political Uncertainty and Bank of England Signals Weigh on Markets
0Andy Burnham Wins Makerfield By-Election and Emerges as Main Challenger to Keir Starmer
Dorset Council Tests AI Tools to Streamline Local Planning Applications
UK Researchers at Kew Gardens Use AI to Speed Up Identification of Threatened Plant Species
UK Gilt Yields Ease Toward 4.8% as Inflation and Labour Market Data Weigh on Bonds
Bank of England Data Shows Resilient SME Lending Despite Economic Slowdown
UK Finance Reports Weakening Services Activity as Business Confidence Softens
UK Introduces Mandatory Internal Complaints Process Under Data Use and Access Act
Bank of England Governor Andrew Bailey Flags Geopolitical Uncertainty as Key Risk to Inflation Outlook
Bank of England Holds Interest Rates at 3.75% as Policymakers Signal Cautious Stance on Inflation Risks
Cornwall Clergy Raise £40,000 for Church Repairs Through Everest-Themed Charity Challenge
UK Business and Social Landscape Reflects Strain From Geopolitical and Domestic Pressures
Tensions Grow in UK Over Sikh Kirpan and Religious Symbolism in Public Debate
Energy Price Cap Increase Set to Lift UK Household Bills by 13 Percent
University of Reading Ranked 196th in QS World University Rankings
UK Maritime Archaeologists Identify 17th-Century Dutch Shipwreck Off Devon Coast
Oxford Union Islam Debate Sparks Protest From Faith Leaders in UK
UK Social Cohesion Debate Intensifies After Religious Prejudice Survey Findings
UK SME Lending Rises Despite Geopolitical Uncertainty and Cautious Outlook
Foreign Demand for UK Gilts Remains Sensitive to Global Inflation Trends
Labour Party Faces Leadership Pressure After Weak Local Election Results in UK
Transport Costs Drive Inflation Pressure as Petrol Prices Push Up UK CPI
British Chambers of Commerce Cuts Growth Forecast as Middle East Conflict Weighs on Investment
UK Economy Grows 0.6 Percent in First Quarter but Outlook Remains Weak
Bank of England Holds Interest Rates at 3.75 Percent as Inflation Risks Persist
Energy Price Cap Rise Expected to Keep UK Inflation Above Target Through 2026
Health Authorities Warn of Rising Cases of Seasonal Respiratory Illnesses
BAE Systems and Rolls-Royce Advance Multi-Nation Fighter Aircraft Programme
National Archives Publish Declassified Documents on Cold War Energy Security Planning
British Retail Spending Rises Despite Continuing Cost-of-Living Pressures
Wales Launches Social Housing Pilot to Address Affordability Pressures
British Energy Companies Commit £5 Billion to Geothermal and Hydrogen Projects
Northern Ireland Debates Cross-Border Healthcare Partnership With the Republic of Ireland
UK Establishes National Artificial Intelligence Safety Centre With Leading Universities
UK Reports Decline in Small Boat Crossings After Expanding Intelligence Cooperation With France
Scottish Parliament Launches Inquiry Into Delays to Renewable Energy Projects
National Crime Agency Dismantles Alleged Multi-Million-Pound Money Laundering Network in London
Transport Strikes Disrupt Rail and Bus Services Across Northern England
United Kingdom and European Union Open New Security Dialogue on Defense and Border Cooperation
Bank of England Holds Interest Rates at 5% as Services Inflation Remains Elevated
UK Government Unveils Major National Health Service Reform Focused on Decentralization and Performance Funding
Government Advances New Airport Slot Rules to Ease Airline Operating Constraints
×