With the charges placed on Sam Bankman-fried there are still some ongoing disputes on the rightful owner of some Robinhood shares. At present, some other parties claim rightful ownership of the shares, one of which is BlockFi.
Rightful Owners Of The Shares
The FTX exchange intends to assert its ownership rights over the Robinhood shares by using the U.S. bankruptcy filing as leverage. These Robinhood shares have a long path leading to Emergent Fidelity Technologies firm as the original owner. Sam Bankman Fried, however, bought these firm’s shares in the first quarter of the year, giving him some percentage stake in the company.
These disputes are still ongoing, with three parties vying for legal ownership of these shares worth more than $400 million. Among these parties are the Blockfi lending firm, SBF, and one of FTX’s creditors.
FTX has requested that the court intervenes in the issue of these shares to prevent them from falling into the wrong hands, as ownership of these shares is solely with the FTX exchange.
Also read:FTX Collateral Pledge To BlockFi
In the case of BlockFi, the company claimed that earlier this year it loaned the FTX exchange a total of $680 million, with the shares pledged as collateral in case of inability to pay.
According to BlockFi, the stipulated time for this debt repayment was to be November 9th, but prior to that time, the FTX filed for Chapter 11 bankruptcy protection. This bankruptcy filing released FTX from the leash, preventing BlockFi from receiving any type of compensation.
This bankruptcy filing helped to protect the FTX from its creditors.
Following the bankruptcy filing of Emergent Fidelity Technologies, an order was issued to freeze all of the company’s shares. SBF, on the other hand, attempts to circumvent the system by channelling its shares through a social media platform, Signal.
However, with FTX’s founder’s ongoing case, an appeal to the court to keep these shares frozen and prevent them from falling into the hands of the wrong people was made. This now-defunct FTX firm maintains its position as the actual, legal owner of the Robinhood shares.
They also claimed that the Emergent Firm only stands in as the original owners of the shares.
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