Sam Bankman-Fried Fights to Keep Control of $450M in Robinhood Shares as Circle of Creditors – Robinhood Markets (NASDAQ:HOOD)

ftx founded by Sam Bankman-Fried is facing a legal battle as it tries to take control of its 56 million shares in the consumer trading app Robinhood Markets Inc hood, It is currently worth around $450 million,

Bankman-Fried acquired them through its holding company. Emergent Fidelity Technologies In May 2022, when he was valued at approximately $600 million.

on a court AdmissionBankman-Fried’s representatives cited the need for some of these funds to pay for his criminal defense, citing American case law that financial inability to defend oneself can result in “irreparable harm”.

The filing also argued that the debtors’ requests to access the funds should be denied because they “have failed to bear their heavy burden of demonstrating that they are entitled to this form of relief.”

Multiple parties including crypto broker blockfi And ftx ftt/usd were trying to acquire the remaining valuable assets of Bankman-Fried.

Read also: BONK Token’s Meteoric Rise Has Stalled: Are Investors Losing Bets?

In December 2022, CEO of FTX John Ray IIIwhich took over from Bankman-Fried, requested the court that the bankruptcy of the exchange freeze Bankman-Fried’s Robinhood shares.

in the court AdmissionFTX argued that because there were so many creditors seeking ownership of these shares, “the assets should be frozen until this Court can resolve the issues in a manner that is fair to all of the Debtors’ creditors.” cool Beans.”

Defunct crypto lender BlockFi, which filed for bankruptcy in November 2022, claimed the assets were mortgaged under the terms of an agreement made on November 9.

The lender alleged that Bankman-Fried’s investment vehicle “defaulted on its obligations under the pledge agreement” and “failed to meet its obligations despite written notice of default and acceleration.”

Court filings acknowledged that the request by the debtors was “controversial”, but noted that Bankman-Fried was legally “compelled to respond” to the debtors’ requests.

Read further: SEC investigates due diligence done by investors in bankrupt crypto exchange FTX

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