Following the ongoing legal brawl between FTX and BlockFi over controversial Robinhood shares, BlockFi requested the court to move the fund to a neutral broker. However, the presiding bankruptcy judge, Michael Kaplan, revealed that he would decide on the request by January 9 after hearing testimonies from both sides’ lawyers.
BlockFi Motioned Court To Move Robinhood Shares To Neutral Broker
The negative effect of the FTX collapse continues to linger in the crypto market. BlockFi, a decentralized financial platform, recently presented a proposal to the judge over its legal brawl with FTX.
According to the proposal, BlockFi requested the judge to move the disputed Robinhood shares worth about $600 million from FTX custody to a neutral broker. However, Judge, Michael Kaplan, ruled that he would decide where the controversial fund would be kept for further investigations by January 9.
BlockFi, a decentralized crypto assets lender, reportedly sued the collapsed FTX founder, Sam Bankman-Fried, over the Robinhood shares. According to the report, BlockFi claimed that before FTX collapsed, its twin company, Alameda Research, borrowed about $600 million from it.
Keeping The Controversial Funds
Meanwhile, the lender firm said FTX used the highly-disputed Robinhood funds as collateral for the loan. The 56 million Robinhood shares are worth about $450 million at the current market price.
The shares belong to Emergent Fidelity Technologies, which Sam Bankman-Fried owns. Marex Capital Markets, an investment management firm, currently holds frozen shares.
The firm would keep the controversial funds until the presiding judge said otherwise. At the scheduled ruling date, Judge Kaplan plans to use the evidence and testimonials presented by the two parties to judge whether he would move the shares’ custody to a neutral broker.
He added that he would also probe the ownership of the funds by throwing a series of questions to the two competing sides. On December 23, FTX motioned the court to prevent BlockFi from claiming the disputed Robinhood shares.
It further proposed that the court allow the fund to remain at Marex Capitals, where it is still under its control. Furthermore, the firm claimed that keeping the shares where they were would give the warring parties enough time to gather and present their evidence.
However, the former CEO of FTX recently filed an affidavit that showed that he borrowed $546 million from Alameda Research to acquire the controversial Robinhood shares. According to reports, Sam Bankman-Fried and his former co-founder borrowed the loan and purchased the shares.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.