The domino effect yesterday affected BlockFi, which declared bankruptcy following the FTX affair. But she intends to fight: she is suing Sam Bankman-Fried (SBF) for Robinhood shares (HOOD) which should have been returned to her as collateral for a loan. This is one more offshoot in the FTX business, which is growing day by day.
BlockFi sues FTX
We explained it to you yesterday, it is the turn of the crypto-lender BlockFi to start a voluntary bankruptcy procedure (chapter 11). The fall of the company is due, among other things, to a loan of 250 million dollars in FTT, the token of FTX, whose value has collapsed. BlockFi says it wants to repay its more than 100,000 creditorsbut the procedure should also take time.
On the same day as its declaration of bankruptcy, however, BlockFi also filed a lawsuit against Sam Bankman-Fried, the former CEO of FTX, for Robinhood shares. According to information revealed by the Financial Times, the investment company of Emergent Fidelity Technologies is targeted, because it holds shares of Robinhood (HOOD) having been used as collateral for a loan granted to SBF.
Sam Bankman-Fried had indeed bought 7.6% of Robinhood shares in the year 2022. This then corresponded to a sum of 648 million dollars.
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The discreet sales of Sam Bankman-Fried
Sam Bankman-Fried allegedly tried to sell his Robinhood shares at the beginning of November, when the FTX case was about to break. He reportedly used the Signal messaging app to discreetly communicate about it. What’s more, he allegedly kept trying to sell them even though he signed the loan agreement with BlockFi. On the evening of November 10, while FTX had suspended withdrawals and was preparing to declare bankruptcy, SBF was still trying to sell them, according to the same source.
BlockFi also quoted ED&F Man Capital Markets: the brokerage would have “ refused to transfer collateral to BlockFi “, without order of the Court responsible for the bankruptcy of FTX.
🔴 LIVE – Follow the FTX deal in real time
The revelations follow one another and are not alike in the FTX affair. In recent weeks, we have seen the extreme intricacy of the FTX empire…and the obviously shady practices practiced by Sam Bankman-Fried and his associates. Unraveling all the links will therefore probably take a few months.
👉 On the same subject – FTX US: Alameda Research reportedly withdrew $200 million worth of cryptocurrencies before the fall
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Source: Financial Times
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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