The Justice Department said Wednesday that has moved to seize millions of shares of Robinhood, the popular stock-trading app, whose ownership is disputed by several parties, including Bankman-Fried himself, his bankrupt crypto exchange FTX and another bankrupt crypto company.“We believe that these assets are not property of the bankruptcy estate or that they fall within the exceptions… of bankruptcy code,” Seth Shapiro, a Justice Department attorney, said during a bankruptcy hearing in Delaware Wednesday.In May 2022, a few months before his companies collapsed and he was charged with defrauding his customers and investors, Bankman-Fried acquired a nearly 8% stake in Robinhood via a holding company he set up with FTX co-founder Gary Wang.Because the competing claims, FTX filed a motion earlier this month to the Delaware bankruptcy court to keep the assets frozen until the court “can resolve the issues in a manner that is fair to all creditors of the debtors.”At the Wednesday hearing, FTX lawyer James Bromley said that while “we certainly believe we have rights with respect to those assets…we are in alignment at the present time with the US government and the law enforcement officials in taking these steps.”Robinhood declined to comment on Thursday.“We’re just watching this unfold and … it’s going to be locked up in bankruptcy proceedings, most likely for some time.”Crypto contagionThe collapse of FTX triggered a panic across the digital asset ecosystem, prompting some firms to halt withdrawals and in some cases file for bankruptcy themselves."