– Sam Bankman-Fried, the founder of FTX, is fighting to keep control of $450 million in Robinhood shares.
– The legal battle over the Robinhood shares is complex and involves multiple parties including FTX and the U.S. Department of Justice.
– Bankman-Fried has opposed FTX’s claim, arguing that he and Wang legitimately purchased the shares using money borrowed from FTX’s trading arm, Alameda Research.
Sam Bankman-Fried, the founder of crypto exchange FTX, is currently engaged in a legal battle over $450 million in Robinhood shares. The shares are currently held by Bankman-Fried and co-founder Gary Wang through an Emergent Fidelity Technologies holding company. However, FTX, the bankrupt crypto exchange founded by Bankman-Fried, is disputing this claim and has argued that the shares should be frozen until they can be divided among FTX creditors.
The US Department of Justice has also announced that it is seizing the shares as part of proceedings against Bankman-Fried, who plead not guilty to multiple charges. Bankman-Fried has opposed FTX’s claim, arguing that he and Wang legitimately purchased the shares using money borrowed from FTX’s trading arm, Alameda Research. FTX made a filing to the Delaware bankruptcy court on Dec.22, stating that the shares in question were only nominally held by Emergent Fidelity and should therefore be frozen. This claim was supported by the individuals responsible for liquidating the company in the Bahamas.
Bankman-Fried’s lawyers stated that the loan was documented and that it was improper for FTX to assume that everything Bankman-Fried had ever touched was presumptively fraudulent. BlockFi, a bankrupt crypto lender, also made a separate filing opposing the attempt to take control of the shares. The legal battle is ongoing and it is unclear at this time how it will be resolved.
In addition to the legal proceedings, Bankman-Fried has also been involved in a public relations battle in order to maintain control of the shares. He has argued that the shares were purchased legitimately and that the money was properly documented. Bankman-Fried has also stated that he plans to use the funds to continue to build upon FTX’s success.
The future of the $450 million in Robinhood shares is uncertain at this point, but whatever the outcome, it is sure to have a major impact on the crypto industry. It remains to be seen whether Bankman-Fried will be able to maintain control of the shares or if they will be seized by the U.S. Department of Justice or FTX.