According to court filings, FTX Trading Ltd debtors and Alameda Research want to freeze 56 million shares of Robinhood stock as multiple creditors and Sam Bankman-Fried (SBF) seek access to the funds.
Court wants to ‘enforce automatic termination’ of FTX claims over 56 million Robinhood shares
22 December 2022,Court documents indicate that FTX debtors want to freeze 56 million shares of Robinhood owned by a subsidiary created by SBF called Emergent Fidelity Technologies. Debtors of FTX and Alameda say multiple entities are seeking to claim these assets, with FTX suing the court against claims against his 56 million shares of Robinhood stock worth approximately $450 million. is automatically stopped.
Class A Common Stock Robinhood shares are currently held in custody at ED&F Man Capital Markets Inc. (EDFM) in New York City. EDFM does not contest its ownership of the $450 million Robinhood stock. Not only is BlockFi Inc. seeking to gain access to the stake, but Yonathan Ben Shimon and his SBF are also seeking stakes, according to court filings. FTX claims to the court that the debtor has “at least a ‘colorable’ claim to ownership of Robinhood shares.”
“The fact that multiple pre-petition creditors of various debtors and Mr. Bankman-Fried are all seeking to acquire ownership of Robinhood shares is an indication of how this court can resolve the matter. It indicates that the assets should be frozen until the matter can be resolved in a fair manner to all of the debtor’s creditors,” detailed FTX court filings filed Thursday night. “A fully developed and complete evidence record shows that Robinhood shares are conclusively real estate,” FTX added.
The filing shows that former Alameda CEO Caroline Ellison allegedly sold most of her stake in Robinhood in an over-the-counter (OTC) transaction. Additionally, Ellison has since pledged shares to Blockfi to initiate a deal to prevent troubled cryptocurrency lenders from defaulting and filing for bankruptcy. Blocfi CEO Zak Prince “agreed to Mr. Ellison’s offer to pledge Robinhood stock and other Alameda assets as collateral for Alameda’s debt,” according to court documents.
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