FTX Demands Court Freeze of $450 Million in Robinhood Shares to Pay Creditors

1: ftx is urging a bankruptcy court to freeze roughly $450 million in robinhood shares held in a brokerage account in new york city. the shares were purchased in may by sam bankman-fried via a special-purpose holding company organized in antigua and barbuda. ftx’s former ceo and blockfi, the now-bankrupt crypto lender, are two of the creditors hoping to get hold of the stockpile. yonathan ben shimon petitioned an antigua-based court to appoint him the robinhood shares.

2: in november, blockfi filed a lawsuit against bankman-fried, alleging that emergent fidelity technologies had custody of the collateral that belonged to blockfi. the latest filing claims that the shares actually belong to the bankruptcy estate. ftx is now in the hands of its new ceo john j. ray iii.

3: the court is being asked to hold off on any distribution of the shares due to the list of creditors. the court need find only that the robinhood shares are ‘arguably’ estate property. alameda has ‘arguable claims of right to the [robinhood shares], or a colorable basis for asserting an interest in the [robinhood shares].’ this “colorable” claim is enough that the $450 million in robinhood shares should “remain frozen.” the founder of ftx and its former ceo is one of the creditors hoping to get hold of the stockpile.


By Evey Lovelace

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