FTX’s new management engages in a legal tussle against BlockFi and Sam Bankman-Fried to get their hands on 56 million shares of Robinhood (HOOD). The latter are currently held by an Antiguan company belonging to SBF, and could allow FTX to increase its portfolio intended to reimburse its injured users.
Who will collect the shares of Robinhood?
According to a document filed with the bankruptcy court, current FTX management seeks $440 million worth of Robinhood stock (HOOD) and thus embarked on a legal battle opposing it, among others, to struggling cryptocurrency lender BlockFi.
These shares are linked to an Antigua-based company 90% owned by Sam Bankman-Fried, the former bankruptcy CEO who has also just been released on bail for $250 million.
But a problem arises in this case. Indeed, these shares are already coveted by 3 entitiesto know :
- Sam Bankman-Fried himself, who would seek to pay his legal costs via these actions, according to FTX;
- BlockFi, which was harmed following the collapse of FTX;
- Emergent Fidelity Technologies, the Antiguan company majority owned by SBF.
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Thus, each considers that the shares currently held by the Antiguan company belong to him by right within the framework of the bankruptcy procedure. Regarding Sam Bankman-Fried, he would have tried to regain control of these shares on December 11shortly before his initial arrest.
Also, FTX, which hopes to recover the right to these shares in order to consolidate its portfolio and potentially repay some of its creditors, finds himself engaged in a fight in court against 3 other parties. In addition, Caroline Ellisonthe former CEO of Alameda Research, reportedly promised BlockFi that Robinhood shares would revert to them shortly before FTX went bankrupt.
In parallel with the recently filed lawsuit, the current management of FTX has allegedly asked ED&F Man Capital Marketsthe broker that retains Robinhood shares, to freeze them on November 11.
In the document submitted, FTX Urges Exchange Bankruptcy Judge To Oversee Stock Freeze “the time that FTX finds how to repay its creditors”.
👉 In The News – FTX reportedly has over $1 billion in bank accounts
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Source: Bloomberg
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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
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