FTX attempts to maintain ownership of Robinhood shares in court

Hull Invest

FTX and Alameda Research seek to secure ownership of Robinhood shares worth over $440 million. Court submission Date December 22nd.

Emergent Fidelity Technologies currently owns approximately 56 million shares of Robinhood stock (HOOD), according to filings. Emergent Fidelity Technologies is 90% owned by former FTX CEO and Alameda administrator Sam Bankman-Fried.

Ownership of these Robinhood shares is currently in dispute, with three separate parties seeking to claim ownership in courts spanning multiple jurisdictions.

The first plaintiff was BlockFi, which accepted Robinhood stock as additional collateral for a loan with Alameda Research prior to the bankruptcy of Alameda and FTX. BlockFi now intends to acquire and sell these shares, and has attempted to do so through New Jersey courts since filing for bankruptcy on November 28.

The second claimant is FTX creditor Yonathan Ben Shimon, who is working through an Antigua receiver to acquire Robinhood shares.

The final plaintiff is Sam Bankman-Fried himself, who is seeking to oust the trustee and acquire shares in the Antiguan Court. Bankman-Fried plans to sell his stake to cover legal costs. He is currently out on bail before trial.

FTX argued in today’s filing that Emergent only nominally owns shares and that Alameda Research is the true owner of Robinhood shares.

In support of this claim, former Alameda CEO Caroline Ellison, both in the company’s spreadsheet and in negotiations with BlockFi, treated Robinhood’s shares as assets belonging to Alameda Research, “explicitly stated ‘ claimed.

FTX has requested that the shares be frozen until a judge resolves the issue. If necessary, all creditors will be required to participate in the claims process in the U.S. Bankruptcy Court in Delaware, where FTX’s bankruptcy proceedings are being filed.

Since the collapse of FTX last month, Robinhood stock has been a key issue. As early as November 10, insiders suggested that Robinhood shares, along with FTX’s customer deposits and FTX’s FTT tokens, were used to underpin Alameda Research.

Emergent bought shares in Robinhood on behalf of Bankman-Fried in May of this year. At the time, his stock was valued at $482 million, representing his 7.6% stake in Robinhood.

Posted In: FTX, Exchanges

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