- FTT price pulls back after FTX co-founders Sam Bankman-Fried and Gary Wangs' shares are requisitioned by US Department of Justice.
- SBF’s lawyers argue that the the shares were not part of the bankruptcy estate and are needed to pay legal bills.
- FTT price pulls back from its peak but remains above key support at $1.
FTX saga took another unfavourable turn for its embattled owners on Monday, after the US Department of Justice (DOJ) seized $450 million worth of shares owned by Samuel Bankman-Fried and his FTX co-founder Gary Wang on trading platform Robinhood. At the same time, FTX's exchange token FTT reversed a spike to $1.150, to drop back to just over $1.003, though the token's price remains 10% up on the day.
FTX's Bankman-Fried losses Robinhood shares worth $450m after US DOJ snatch
Despite FTX co-founders Sam Bankman-Fried and Gary Wang claiming that the 55 million Robinhood shares should remain beyond the reach of liquidators, the US authorities do not agree and they have been requisitioned by the DOJ on Monday, January 9, 2023.
The struggle over whether Bankman-Fried and Wang should retain the shares, worth an estimated $450m, began last week when reports of the Justice Department looking to seize the shares came to light. After Sam Bankman-Fried was notified of their intention the ex-CEO filed a plea claiming ownership.
Bankman-Fried’s lawyers argued that the Robinhood shares could not be seized as they were not a part of the cryptocurrency exchange’s bankruptcy estate. As per the filing, the shares were owned by Emergent Fidelity technologies which the FTX founder had a 90% stake in.
However, the plea has seemingly been in vain, as according to the Justice Department, the Robinhood shares have become a part of money laundering and wire fraud violation, thus rendering their seizure lawful.
FTT price in the green
FTT price stays in the green during trading on Monday as the cryptocurrency traded at $1.030 at the time of writing. This marks a 10% daily rise for the altcoin although it was substantially lower than its intraday peak at 1.150, an almost 25% rise on the day.
In order for FTT price to turn $1.000 into a support floor, the cryptocurrency will have to keep its head above the one Dollar level over the next few hours, and close above $1.032. This level was tested last week when the altcoin rallied by 13%, but was invalidated soon after.
FTT/USD 4-hour chart
Persistent fear in the market, however, does present some threat to FTT's future fortunes, and could result in FTT price losing the $0.965 support ledge. Slipping further would lead to the altcoin tagging $0.939 and $0.903, and a daily candlestick close below the latter level invalidating the bullish thesis, and probably pushing the price further down to $0.880.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.