FTX Seeks Help From The Court For Ownership Of $450M Robinhood Shares

Key Points:

• FTX wants to take ownership of $450M Robinhood shares.
• Shares in a company 90% owned by former FTX CEO Sam Bankman- Fried (SBF).
• Creditors SBF, FTX Yonathan Ben Shimon and BlockFi are trying to control this stake.

According to a document filed Thursday, FTX seeks help from the U.S. bankruptcy court in its battle for ownership of approximately $450 million worth of Robinhood stock, according to Coindesk.

At issue, according to the filing, is about 56 million brokerage shares owned by Emergent Fidelity Technologies, a corporate entity incorporated in Antigua and Barbuda that is 90% owned by former FTX CEO Sam Bankman-Fried (SBF).

According to the filing, three parties attempted to gain control of those shares: BlockFi (a lending company that FTX backed earlier this year), Yonathan Ben Shimon (a creditor of FTX appointed as the recipient in Antigua and authorized to sell shares under the supervision of the courts there) and Bankman-Fried himself (who has the legal bill).

When the bankruptcy began on November 11, FTX’s bankruptcy asset managers asked ED&F Man Capital Markets, the brokerage firm where the shares were held, to freeze the shares.

FTX has determined that Emergent owns only “in name” these shares, which actually belong to their company. The bankrupt cryptocurrency company said in the filing that “Emergent is a special-purpose holding company and appears to have no other business.”

Hence the argument in the filing that the judge overseeing the bankruptcy should freeze the stock while FTX is trying to find a way to pay back all of its creditors.

This is not the first time Blockfi has claimed ownership of these shares. As was updated in an earlier Coincu News article, on November 28, Sam Bankman-Fried was sued by BlockFi over ownership of Robinhood. The report was released shortly after BlockFi filed for Chapter 11 bankruptcy protection hours earlier. BlockFi’s complaint seeks Robinhood shares because the SBF allegedly maintained them as collateral.

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