bankrupt crypto lender blockfi is suing ftxFounder Sam Bankman-Fried to seize shares in American trading platform Robin HoodThe exchange fell into disrepute just days before it was allegedly pledged as collateral by the former FTX CEO.
FTX declared bankruptcy on November 11, and Blockfi did the same on Monday. The latter said that exposure to the former, adding to FTX’s parent company, led to its collapse. Alameda Research In early November some $680 million in collateralized loans defaulted.
Soon after filing for bankruptcy protection, BlockFi also filed suit.
creditor’s documentA US Bankruptcy Court filing states that BlockFi filed a complaint against it. Emergent Fidelity Technologies And ED&F MAN Capital Marketsstating that,
“Blockfi seeks to enforce the terms of a pledge agreement and recover collateral that is an asset of these bankruptcy estates.”
BlockFi requests direction of court order
“To immediately transfer emergency and/or EDFM collateral to a neutral party such as a neutral broker or court-supervised escrow, and ultimately to BlockFi.”
The Financial Times informed ofThe view, citing loan documents, claims that the collateral is Bankman-Fried’s stake in Robinhood, adding that the FTX founder bought 7.6% of the trading platform earlier this year.
To According to Yahoo Finance data, Robinhood holds 835.68 million shares. 7.6% of this would be 63.51 million, which at the current price of $9.19 is equivalent to $583.67 million.
BlockFi claims in the document that on November 9th, it entered into an agreement with Emergent to guarantee the payment obligations of an unnamed borrower — allegedly identified by legal correspondence as Alameda — as security for something ” by pledging “common stock”.
Emergent was supposed to deliver the “collateralized shares” to Blockfi but did not, after which, on November 10, Blockfi reportedly informed Emergent that the tolerance period had expired.
As for London-based brokerage ED&F Man Capital Markets, it has been named as an “emergent broker” in the lawsuit, in which Blockfi alleges it “refused to transfer collateral to Blockfi”.
Citing legal correspondence filed with the complaint, the Financial Times said the ED&F man had refused to transfer assets “absent an order from the bankruptcy court” in the FTX proceedings in Delaware, USA.
as informed ofIn mid-November, BlockFi continued to block withdrawals amid the FTX decline, saying they were exploring all scenarios to find the best way forward.
Meanwhile, just days before the collapse of FTX, BlockFi had started again After its crypto yield product it had to shut it down in the US Securities and Exchange Commission (SEC) $100 million settlement.
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learn more:
, Crypto lender BlockFi halts platform activity, files for bankruptcy amid FTX drama
, FTX Lawyer Says A ‘Substantial Amount’ Of Money Is Missing – Is It Missing Or Was It Stolen?
, Venture capital firm Sequoia apologizes to fund investors for $150 million loss on FTX
, Solana Foundation Lost Nearly $200 Million After FTX Collapse – Here’s What You Need To Know
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