$450 million in Sam Bankman-Fried’s sights – FTX wants to keep Robinhood shares frozen

Stocks and wolves – The administrators of the bankruptcy of FTX are firing on all cylinders to protect the assets of the crypto exchange and its subsidiaries, which could contribute to the repayment of their creditors. It is in this context that FTX asked a US court to protect Robinhood shares, which BlockFi and two other people are eyeing.

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$450 million coveted by FTX creditors

According to a deposit of FTX on December 22 in the United States Bankruptcy Court for the District of Delaware, the crypto exchange and its affiliated entities have sought the assistance of the United States justice, in the context of a litigation which concerns approximately 56 million class A shares of Robinhood.

FTX is fighting to protect and recover these shares, worth nearly $450 million, currently held by brokerage firm Emergent Fidelity Technologies Ltd, which Sam Bankman-Fried controls 90%.

Robinhood Shares

Early in the Chapter 11 process, a request was made to ED&F Man Capital Markets, the brokerage that stores the stocks, to freeze these assets. Since then, BlockFi and Yonathan Ben Shimon who are creditors of FTX, have sought to take possession of it. And even Sam Bankman-Fried tried to get his hands on those stocks.

Faced with these various attempts to recover these assets, FTX asked the judge supervising its bankruptcy to issue a court decision, which will maintain the freezing of these shares“until this court can resolve the issues in a way that is fair to all creditors” of the crypto exchange and its affiliates.

This request addressed to the court is further proof of the will of the team in charge of managing the bankruptcy of FTX, to recover a few million additional dollars, to pay off the abyssal debts of the crypto exchange and affiliated entities. To accomplish his mission, the new CEO of FTX, John Ray III, even goes so far as to cross swords with Bahamian regulation.

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