As Sam Bankman-Fried faces multiple charges, a new document released Tuesday reveals Alameda Research’s involvement in funding his Robinhood stock. The subsidiary of FTX would have lent $ 546 million to the former CEO of the group, as well as to its co-founder Gary Wang.
The Legal Maze of Robinhood Stocks
In an affidavit by Sam Bankman-Fried made public by the High Court of Antigua and Barbuda, we learn that he and Gary Wang, both co-founders of the firm FTX, took out multiple loans in 2022 to Alameda Research totaling $546 million.
These loans were made to finance the repurchase of 56 million shares of Robinhood (HOOD) by Emergent Fidelity Technologies, a company based in Antigua, 90% owned by Sam Bankman-Fried and 10% by Gary Wang.
While on April 30, 2022, $316.6 million and $35.1 million were borrowed by Sam Bankman-Fried and Gary Wang respectively, the operation was repeated two weeks later with two loans estimated at $175 million. dollars and $19.4 million each. However, according to the former CEO of FTX, the sums spent could be even higher :
“The shares were acquired in several installments and I am not sure of the exact price paid for these shares. However, I believe the total amount spent is less than $648 million. […] However, if the amounts spent by the Emergent company exceed $546 million, then I have no doubt that the additional monies were borrowed by Gary and myself. »
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Besides, this loan served as collateral for Sam Bankman-Fried for a loan he took out with BlockFi to Alameda Research on November 9th. In addition, a veritable legal labyrinth is emerging, with several actors claiming ownership of the funds:
- Sam Bankman-Fried, who wanted to pay his legal costs with these assets according to FTX;
- Emergent Fidelity Technologies ltd, which legally owns the funds;
- BlockFi, requesting repayment of its defaulted loan;
- and FTX, which hopes to repay some of its creditors.
Currently, Robinhood shares are held at ED&F broker Man Capital Markets. So far, neither FTX nor Sam Bankman-Fried have managed to recover these funds. Recall that Sam Bankman-Fried is being sued in the United States for 8 countsin particular for money laundering and securities fraud.
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Source: High Court of Antigua and Barbuda
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Always enthusiastic about new technologies, I gradually moved closer to Web3-related activities during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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