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Re:U.S. moves to seize $460M Robinhood stake linked to Sam B... by crazygringo on Thursday January 05, 2023 @01:38PM (#34264370)
I think you're missing the "unlawful" part. Because this is all totally lawful, according to bankruptcy law.

Bankruptcy proceedings are all about identify all assets and loans, and figuring out how to recover them maximally in order to distribute whatever's left of them to creditors and owners.

This isn't some arbitrary seizure. Obviously an owner can't be allowed to start drawing gigantic loans from a company they control, declare bankruptcy, and think they get to keep the loan money. (Same thing as how, in a criminal case, a thief can't sell a stolen painting for $10M cash, and then expect to be able to use that cash to fund their defense.) Bankruptcy court rightly has the power to claw back fraudulent transactions such as these.

I'm not saying the government never abuses search and seizure, but in the specific case of bankruptcy, retrieving assets is the whole first half of bankruptcy (with their reallocation being the second). So bankruptcy is basically the worst example you could use for trying to claim abuse of search and seizure.

Re:U.S. moves to seize $460M Robinhood stake linked to Sam B... by bmitc on Thursday January 05, 2023 @02:00PM (#34264728)
I am also curious what is considered to be unlawful about this. This person has been charged with financial fraud, amongst other things. It makes perfect sense why financial assets would be seized.

And from some other comments pointing this out, this seems to be related to the bankruptcy of FTX and a claim to the funds by FTX.