Summary:
- BlockFi and FTX are in contention over 56 million shares in trading giant Robinhood.
- The shares are currently controlled by Emergent Fidelity Technologies, a company owned almost entirely by fallen crypto billionaire Sam Bankman-Fried.
- BlockFi argued ownership of the Robinhood stock as part of a deal with Bankman-Fried but FTX pushed for the assets to stay frozen.
FTX filed a motion in a bid to freeze around $450 million in Robinhood shares as bankruptcy creditors battle over control for Sam Bankman-Fried’s massive investment in the trading giant.&
The assets in question are some 56 million shares in equity and crypto trading platform Robinhood. Bankman-Fried bought his stake in Robinhood for $600 million back in May 2022. According to the court filing, the shares are currently owned by Emergent Fidelity Technologies. Notably, SBF owns 90% of the company and controlled its operations.&
BlockFi Sues For Robinhood Stock
BlockFi sued the fallen exchange Founder over his Robinhood shares. The bankrupt crypto broker claimed that Bankman-Fried pledged his 56 million shares as part of a deal. BlockFi also claimed the agreement was reached FTX declared bankruptcy on November 11.&
Other claimants of SBF’s Robinhood stock include Yonathan Ben Shimon (creditor), and Sam Bankman-Fried himself, per the court filing.&
FTX Ask Judge To Freeze SBF’s Robinhood Stock
The bankrupt crypto exchange responded to BlockFi and other claimants by asking the judge to freeze Bankman-Fried’s shares in Robinhood. Instead, lawyers representing the disgraced exchange argued to maintain the asset freeze until the bankruptcy court deliberate on the best resolution for all parties.&
The fact that multiple prepetition creditors of different Debtors and Mr. Bankman-Fried are all seeking to obtain possession of the Robinhood Shares demonstrates that the asset should be frozen until this Court can resolve the issues in a manner that is fair to all creditors of the Debtors.
BlockFi’s complaint is one of several against SBF’s shattered crypto empire. Court filing revealed at least $3 billion owed to the top 50 creditors. Over 1 million creditors also failed claims.& The bankruptcy court chose crypto market maker Wintermute and Genesis entity GGC International as part of the Unsecured Creditors Committee.
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