Sam Bankman-Fried's lawyers claim he needs Robinhood shares 'to pay for his criminal defense'

The ineligible squad for erstwhile FTX CEO Sam Bankman-Fried has filed a question successful an effort to halt the exchange’s debtors from controlling much than $450 cardinal worthy of shares of Robinhood.

In a Jan. 5 tribunal filing regarding FTX’s bankruptcy case, Bankman-Fried’s lawyers said FTX debtors had “failed to transportation their dense burden” establishing that they had a ineligible assertion to much than 56 cardinal Robinhood shares. The ineligible squad confirmed reports that the United States Departure of Justice was successful the process of seizing the shares, but said SBF was “compelled to reply” fixed the stakes surrounding the assets.

“Mr. Bankman-Fried has not been recovered criminally oregon civilly liable for fraud, and it is improper for the FTX Debtors to inquire the Court to simply presume that everything Mr. Bankman-Fried ever touched is presumptively fraudulent,” said the filing, referring to the Robinhood shares. “The FTX Debtors person not shown that they person a tenable likelihood of succeeding connected the merits of a fraudulent transportation claim.”

The tribunal filing cited U.S. authorities’ transgression lawsuit against Bankman-Fried, successful which helium faces 8 transgression counts, including ligament fraud and violations of run concern laws. According to his lawyers, SBF “requires immoderate of these funds to wage for his transgression defense.” They cited lawsuit instrumentality successful which withholding funds could “constitute irreparable harm” to one’s defense.

Bankman-Fried claimed successful December — anterior to his apprehension successful the Bahamas and extradition to the U.S. — that helium had lone had $100,000 near successful his slope account. However, 2 individuals whose idiosyncratic accusation has been redacted from nationalist documents person also signed connected to beryllium sureties for his $250-million bond, on with his parents.

The erstwhile FTX CEO has pleaded not blameworthy to each charges, and his proceedings is expected to statesman successful October. As a information of his bail, a national justice ordered Bankman-Fried not to entree oregon transportation immoderate cryptocurrency oregon assets from FTX oregon Alameda. On-chain information had suggested funds from Alameda wallets were being moved amid the tribunal cases.

Related: FTX laminitis reportedly cashes retired $684K aft being released connected bail

Though the U.S. Justice Departure whitethorn soon person power of each of the Robinhood shares, FTX, BlockFi and Bankman-Fried person separately antecedently staked claims for antithetic reasons. BlockFi filed a suit successful November claiming the stocks were enactment up arsenic collateral for the firm’s loans to Alameda Research, portion FTX has argued the shares should beryllium controlled by the steadfast portion the bankruptcy lawsuit proceeds.