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BlockFi Drags Sam Bankman-Fried To Court Over Sold Shares

The now-defunct BlockFi, which was one of the key players in the crypto lending industry, has proceeded to drag the founder of the bankrupt crypto exchange, FTX, to court.

According to BlockFi, the Emergent Fidelity Technologies for Robinhood (HOOD) shares, which are still controlled, were earlier guaranteed as securities to BlockFi.

The Robinhood Shares Are Our Security

One of the previous key players in the crypto lending industry who recently declared bankruptcy on Monday, BlockFi, has dragged a crypto firm affiliated with Sam Bankman-Fried, the founder of the FTX exchange, to court over Robinhood shares on the same day it declared bankruptcy.

BlockFi has claimed that the Robinhood (HOOD) shares that are currently being held by Emergent Fidelity Technologies were earlier guaranteed as security for a loan that it granted to Sam Bankman-Fried and FTX just before the exchange’s nasty fall.

The defunct crypto lender, in a bid to explain, stated that earlier this month, on Wednesday, the 9th, it made a financial agreement with Emergent Fidelity Technologies, which is a holding company for FTX founder Sam Bankman-Fried.

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Initially, Emergent Fidelity Technologies had not disclosed the name of the borrower; they had just said that the borrower was staking “an unnamed common stock” as a security for the loan. However, the holding company later admitted that the unnamed borrower was the crypto trading firm Alameda Research, which was co-founded by Sam in 2017.

In the suit filed, the defendants are Emergent Fidelity Technologies LTD. and ED&F Man Capital Markets INC., and BlockFi is pleading with the court to enforce the agreement between it and the holding company. 

According to BlockFi, key fundamentals in the agreement, like ensuring that payments are made timely, have been breached, and as such, they no longer have an agreement, and the security shares should be handed over to the company as stated in the agreement.

Sam Bankman-Fried Refuses To Say A Word

Since he is not a direct recipient of this suit, one would ordinarily expect him not to say anything. However, the bone of contention is the loan agreement made on behalf of his company, but the founder is yet to address the public.

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One wonders if he will make a public address later, especially to counter the claims that he tried to sell off the shares in question even after the said agreement. 

For now, Sam Bankman-Fried is surely taking his precious time.


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Jimmy Kelly

Jimmy is one of the news journalists for Tokenhell. He is a big crypto enthusiast and bought his first crypto token way back in 2015! Jimmy publishes updates about crypto tokens, events, price analysis and regulation among many other subjects.

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