Cryptocurrency lending platform BlockFi, which filed for bankruptcy on November 28, has filed a lawsuit against former FTX exchange CEO Sam Bankman-Fried.
Sam Bankman-Fried used Robinhood shares as collateral for a loan, BlockFi said. It really is possible – the former CEO of FTX bought 56.2 million shares of Robinhood in May this year for $648 million. This is 7.6% of the company’s total shares.
The lawsuit emphasizes that Bankman-Fried’s Emergent Fidelity Technologies and ED&F Man Capital Markets refused to transfer shares of Robinhood to the service. BlockFi representatives said that after the transition of the Emergent company into default status, they turned to it with a request to transfer the securities, but the shares were never transferred.
Note that even if the court obliges to transfer securities to the BlockFi service, these funds may not be enough to pay off debts. The filing for bankruptcy states that BlockFi has assets ranging from $1 billion to $10 billion, but also liabilities in the same range.
Source: Bits
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