Court documents reveal that debtors at FTX Trading Ltd are trying to freeze 56 million Robinhood shares when creditors swarm to access the funds. Sam Bankman-Fried (SBF) of Alameda Research is the owner of the assets.
Court filing seeks to ‘enforce a stay’ on all claims relating to FTX’s 56,000,000 shares of Robinhood
On December 22, court records have shown that FTX debtors are attempting to secure 56 million Robinhood shares owned by an SBF-affiliated entity called Emergent Fidelity Technologies. Several entities have claimed that debtors are attempting to seize these assets, including the now-defunct crypto lending company Blockfi. FTX is asking the court to impose an automatic stay on all claims regarding the Robinhood shares, which is estimated to be worth around $450 million.
Currently, a portion of the common shares are held by ED&F Man Capital Markets Inc. (EDFM). EDFM is not denying the ownership of the $450 million worth of Robinhood shares. According to court documents, BlockFi is a trademark of BlockFi Inc. It is not only about trying to gain access to the shares. SBF and FTX also want the shares and FTX is claiming that debtors are liable for damages. The filing states that there is “at least one ‘admissible’ claim to the ownership of the Robinhood shares.”
“The fact that multiple pre-petition creditors from different debtors and Mr. Bankman-Fried are seeking to obtain possession of the Robinhood shares demonstrates that the asset should be frozen until this court can resolve the issues in a manner that is fair to all debtors’ creditors,” reads the FTX court filing which was submitted on Thursday night. “The full evidentiary record, once fully developed, will show that the Robinhood shares are conclusively proprietary,” FTX has added.
The evidence that has been submitted shows that former Alameda CEO Caroline Ellison made a deal to sell almost all the remaining Robinhood shares in an OTC (over-the-counter) transaction. Additionally, Ellison then pledged the shares to Blockfi in order to stop the troubled crypto lender from defaulting and filing for bankruptcy. Court documents confirm that Blockfi CEO Zac Prince “accepted Ms. Ellison’s offer to pledge Robinhood shares and other Alameda assets as security for Alameda’s debts.”
What Do you think of the court documents that prove FTX is trying to freeze $450 million worth of assets in the form of Robinhood stock? Please let us know your opinion on the matter in the comments section below.
