The largely disputed Robinhood shares is perhaps transferred to a impartial dealer or an escrow account whereas the courts decide the rightful proprietor.
Digital asset lender BlockFi not too long ago sued former FTX CEO Sam Bankman-Fried to assert the shares that have been supposedly pledged as collateral for the greater than $600 million that BlockFi loaned to Alameda Analysis.
The 56 million Robinhood Markets shares, that are presently frozen, are value round $450 million. These are owned by Sam Bankman-Fried’s holding firm known as Emergent Constancy Applied sciences which was shaped in Antigua and Barbuda and held by a brokerage firm known as Marex Capital Markets. In line with a lawyer from the brokerage agency, the corporate would proceed to carry the shares till a courtroom order is issued.
In a brand new replace to the dispute, chapter Decide Michael Kaplan has reportedly acknowledged that on Jan. 9, he would overview whether or not the shares ought to be transferred to a impartial dealer, which is below the jurisdiction of the US, following a request from BlockFi. Kaplan famous that he can be contemplating questions on who owns the shares after the attorneys have extra time to research competing claims.
Associated: Chapter courtroom informed FTX and Alameda they owe BlockFi $1B, however it’s sophisticated
On Dec. 23, FTX requested the courtroom to cease BlockFi from claiming the Robinhood shares. The corporate argued that by protecting the shares the place they’re, the claimants which embrace BlockFi, Bankman-Fried and FTX creditor Yonathan Ben Shimon can “take part in an orderly claims course of.” If not permitted, FTX requested an extension of the property’ “keep” on their facet of the fence.
In the meantime, an affidavit filed by the previous FTX CEO revealed that he borrowed $546M from Alameda to buy the extremely sought-after Robinhood shares. The funds have been lent by Alameda Analysis to each Bankman-Fried and FTX co-founder Gary Wang to make the acquisition.
