In order to take over Robinhood’s $450 million stake, Sam Bankman Fried’s insolvent crypto exchange FTX is seeking relief from a US bankruptcy court.
A company based in Antigua and Barbuda, Emergent Fidelity Technologies, has 56 million brokerage shares invested in the portfolio. Sam Bankman-Fried, the founder of the exchange, already bought these shares in March, representing 7.6% in Robinhood (SBF).
BlockFi, a cryptocurrency lender, Yonathan Ben Shimon, a shareholder of FTX, and SBF are the three participants challenging the ownership of shares in FTX and asking the court to stop the acquisition of shares by BlockFi and others.
BlockFi has filed a lawsuit against FTX
Apparently, BlockFi, a cryptocurrency lender, filed a lawsuit against the SBF holding company Emergent Fidelity Technologies on Nov. 28, the same day the company filed for capital of 11. for the share of the market Robinhood (HOOD) owned by the company.
BlockFi has specified that the loan repayment is due on November 9. However, Alameda and FTX filed for bankruptcy before the deadline without repaying the loan. According to FTX, filing for bankruptcy protects the company from debt collection services. Following the November 11 Chapter 11 filing, Emergent’s stockbroker, ED&F Man Capital Markets, ceased distribution under the guidance of the bankruptcy court.
FTX is asking the court to allow the shares to remain frozen as it looks for ways to pay its creditors. According to TheCoinRise report, FTX has revealed that it has almost $3 billion in debt for the top 50 creditors.
The company disputes that FTX itself is the shareholder of the shares and that Emergent only owns them “in name”. In addition, according to the exchange, Emergent is a “special purpose company that appears to have no other business.”