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The US government is stepping into a contentious, multijurisdictional legal fight over the ownership rights of thousands of millions of dollars of assets linked to the Sam Bankman-Fried.
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The Justice Department said that it is seeking to seize the millions of shares held by Robinhood.
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This well-known stock-trading app is owned by various parties which, include Bankman-Fried himself and his bankruptcy-plagued crypto exchange FTX.
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"We believe that these assets are not the property of the bankruptcy estate or that they fall within the exceptions...
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of bankruptcy code," Seth Shapiro, an attorney with the Justice Department attorney, said during a bankruptcy court hearing.
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Four entities have staked claim to the nearly 56 million shares estimated at $460 million.
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The new management of FTX is trying to take ownership of shares away from a holding company based in Antigua that is 90% owned by Bankman-Fried.