London Daily

Focus on the big picture.
Monday, Apr 06, 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
UK Considers Deploying Aircraft Carrier for US Independence Day Celebrations Amid Renewed Transatlantic Focus
United Kingdom Moves to Attract AI Firm Anthropic Amid Tensions with US Defense Officials
RAF Intercepts Iranian Drones in Middle East to Defend Allied Security Interests
Labour Signals Shift on Foie Gras and Fur Restrictions to Advance EU Trade Talks
Seven Arrested Near RAF Base as UK Authorities Respond to Protest Activity
Economic Pressures Mount as Analysts Warn UK Growth Is Being Constrained by Policy Burdens
UK Green Party’s Push for Church-State Separation Sparks Debate Over National Identity
Strategic Island Emerges as Growing Challenge for United States and United Kingdom Defense Planning
Pepsi Pulls Sponsorship from UK Festival Following Backlash Linked to Kanye West
Signs Emerge of Declining Enthusiasm for Social Media in the United Kingdom
Security Alert Raised Ahead of Meghan Markle’s Planned Visit to Australia
UK Food Halls Defy Hospitality Slowdown, Emerging as Bright Spot in Challenging Market
UK Sets Firm Conditions for Military Action, Insisting on Legal Mandate and Clear Strategy
UK Medicines Regulator Launches Probe into Peptide Clinics Over Health Claims
New North Sea Drilling Unlikely to Significantly Cut UK Gas Imports, Analysis Finds
Woman Linked to UK’s First All-Female Terror Plot Faces Deportation
Downed US Aircraft Over Iran Linked to Operations from UK Airfield
Two Men and Teen Detained in UK Following Attack on Jewish Charity Ambulance
UK Police Launch Inquiry After Firearms Left Unattended Outside Mayor’s Residence
Giuffre Family Calls on King Charles to Meet Epstein Survivors During US Visit
Amber Wind Warning Issued as Storm Dave Approaches Parts of the United Kingdom
Prince Harry and Meghan’s Australia Visit Set to Draw Heightened Global Attention
UK Considers Entry Fees for Overseas Visitors at Major Museums Ahead of 2026 Travel Season
UK Prime Minister and Kuwait Crown Prince Coordinate Security Response After Regional Escalation
Calls Grow to Expand Fully Paid Maternity Leave for UK Teachers Amid Workforce Pressures
UK Secures Tariff-Free Access to US Market in Landmark Pharmaceuticals Agreement
Trump Projects Strength in Critique of UK Leadership and Naval Readiness
UK FinTech Setback as VibePay and Smartlayer Cease Operations Amid Funding Pressures
UK Leads Global Coalition of Over Forty Nations to Address Strait of Hormuz Crisis
UK Firms Urged to Accelerate Preparation as New Sustainability Reporting Rules Take Shape
UK Moves Rapid Sentry Air Defence System to Kuwait After Drone Strike Escalation
Transatlantic Relations Tested as UK Seeks Balance While Trump Reshapes Strategic Approach
Trump’s Strategic Pressure on UK Seen as Push for Stronger Alignment and Fairer Terms
UK Focuses on Trade Finance to Secure Critical Materials for Defence and Energy Sectors
Majority of UK Businesses Hit by Middle East Conflict While Confidence Holds Firm
UK Royal Navy Faces Renewed Scrutiny as Debate Intensifies Over Capability and Readiness
Reform UK Faces Mounting Distractions as Policy Agenda Struggles to Gain Traction
Investigation Launched Into Northern Cyprus IVF Clinics After UK Families Receive Incorrect Sperm
International Meeting Issues Unified Call to Safeguard Navigation Through Strait of Hormuz
Potential Strait of Hormuz Closure Raises Concerns Over UK Food and Medicine Supply Chains
UK Leads Coalition of Over Forty Nations Urging Iran to Reopen Strait of Hormuz
UK Secures Tariff-Free Access for Medicines in Landmark US Pharma Trade Agreement
King Charles III Invited to Address Joint Session of U.S. Congress in Rare Diplomatic Honor
Debate Grows Over Whether Expanded North Sea Drilling Can Reduce UK Energy Bills
UK Faces Heightened Risk of Jet Fuel Shortages, Airline Chief Warns
UK Ends Police Investigations into Lawful Social Media Posts After Review Finds Overreach
Abramovich Moves to Establish Charity for Frozen Chelsea Sale Proceeds Amid UK Dispute
Starmer Reaffirms NATO Commitment While Responding to Trump’s Strategic Critique
UK Aid Reductions Raise Fears of Severe Human Impact Across Parts of Africa
UK Signals Renewed Push for EU Cooperation as Iran Conflict Reshapes Security Landscape
×