Ex-FTX Executives Take Out Loans to Buy Stock in Robinhood, Face Fraud Charges

Ceo sam bankman-fried and ex-ftx cto gary wang were involved in a loan agreement with alameda research to purchase stock in the publicly traded exchange robinhood. bankman-fried and wang formed a new company, emergent, to acquire shares in robinhood markets inc totaling $546.4 million. the loans from alameda research were taken out on april 30, 2022 and may 15, 2022 and were paid out in tranches over days before and after the dates listed on the filing.
the loans from alameda research totaled $521,805,737.10 and bankman-fried borrowed $491,743,563.39 and wang borrowed $54,638,173.71. binance announced that it would liquidate its position in ftt, ftx’s native token, and bankman-fried first bought his 7.6% stake in robinhood in may 2022.
how it happened is that bankman-fried and wang took out four loans from alameda research and blockfi is claiming bankman-fried pledged his shares in robinhood to them. blockfi alleges bankman-fried promised his stake in robinhood as collateral to help blockfi through its liquidity issues, however, emergent defaulted on its obligations under the pledge agreement and failed to satisfy its obligations. bankman-fried is also facing eight charges of wire and bank fraud, conspiracy, and money laundering stemming from the collapse of ftx and alameda research. it is believed that bankman-fried funneled customer funds from ftx to alameda research to cover trades.


By Evey Lovelace

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