U.S. prosecutors in process of seizing Robinhood shares caught up in FTX drama

U.S. prosecutors told a U.S. judge that they're in the process of seizing shares of Robinhood Markets ( NASDAQ: HOOD ) that were allegedly pledged as collateral for loans made to Sam Bankman-Fried's Alameda Research, Reuters reported Wednesday. Bankman-Fried pleaded not guilty on Tuesday to criminal charges of wire fraud, securities fraud and money laundering related to the collapse of cryptocurrency exchange FTX. In November, crypto lender BlockFi, which filed for bankruptcy in the wake of FTX's bankruptcy , sued Bankman-Fried's Emergent Fidelity Technologies to get the HOOD shares that were allegedly pledged to BlockFi three weeks earlier. Bankman-Fried and Gary Wang together borrowed more than $546M f rom their hedge fund, Alameda Research, to buy a 7.6% stake in Robinhood ( HOOD ), according to court documents. As a result, Bankman-Fried, FTX and BlockFi all claim they own the the shares. Last week, the Securities Commission of The Bahamas said it seized FTX digital assets valued at more than $3.5B as of Nov. 12 due to " a significant risk of imminent dissipation. "