Investigations with the founder and former head of the FTX cryptocurrency platform, Sam Bankman Fried, revealed that he had seized more than half a billion dollars of clients' funds in the platform.

According to Arabiya Net, the investigations stated that when Sam Bankman Fried bought approximately 7.6% of the famous stock trading application Robin Hood, earlier this 2022, he financed the deal with more than half a billion dollars that he borrowed from his hedge fund, which is what It was done illegally, as it took the clients' money in the FTX platform.

In his affidavit, Sam Bankman-Fried said he and FTX co-founder Gray Wang borrowed more than $546 million from hedge fund Alameda Research, which they used to buy Robinhood shares, via a holding company primarily controlled by Bankman.

Wang has since pleaded guilty to four counts of fraud and conspiracy during US prosecutors' investigation into the collapse of the FTX platform, while Bankman faces eight criminal charges.

Since stepping down from managing the famous platform, Bankman has repeatedly denied committing fraud intentionally, but so far no date has been set for his indictment.

He was arrested earlier this month in the Bahamas, where FTX is based, and was extradited to the US last week, and is under house arrest at his parents' home in California.

He is scheduled to file an objection in federal court in Manhattan on January 3, where he could face life in prison if found guilty.

According to CNN, Sam Bankman Fried's stake in Robin Hood has become at the center of a separate multinational legal battle over assets linked to bankrupt cryptocurrency empire FTX.

Four separate entities claimed about 56 million shares, valued at about $450 million.

The new management of FTX, which is trying to recover money for investors and clients of the bankrupt platform, wants to wrest control of the shares from the Antigua-based holding company that Bankman owns 90%.

Sam Bankman Fried claims ownership of the shares, looking for a source of payment for legal expenses.

Given the competing claims, FTX filed an application earlier this month with a Delaware bankruptcy court to keep the assets frozen until the court can resolve the issues in a fair manner for all of the debtor's creditors.

But it is not clear from the court filings whether the $546 million used to buy the stake included money the plaintiffs allege was stolen from FTX clients' deposits.