BlockFi sues Sam Bankman-Fried’s company to recover Robinhood shares

BlockFi sues Sam Bankman Frieds company to recover Robinhood shares By Publisher DiarioBitcoin

BlockFi, which filed for bankruptcy yesterday, sues Sam Bankman-Fried to recover Robinhood shares.

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  • BlockFi sues Sam Bankman-Fried’s company.
  • Specifically the lawsuit is against Emergent Fidelity Technologies.
  • Seeks to recover the shares in Robinhook that were pledged as collateral.

Yesterday we told of yet another victim of the collapse of the exchange FTX: the cryptocurrency lending platform BlockFi, which is filed for bankruptcy with the U.S. authorities.

Now, just hours after filing for bankruptcy, it became known about a lawsuit that BlockFi presented yesterday November 28th at the United States Bankruptcy Court for the District of New Jersey, vs. the partnership of portfolio by Sam Bankman-Fried, Emergent Fidelity Technologies, in search of its shares in Robinhood which were pledged as collateral in early November. This court, by the way, is the same court where he made the bankruptcy filing.

The lawsuit states that BlockFi y Emergent Fidelity Technologies signed an agreement on Nov. 9 to guarantee payment by an unidentified borrower, pledging unidentified shares of common stock as collateral

In addition, the demand indicates that BlockFi demands a Emergent to return the collateral as part of a compromise agreement he made on November 9. There Emergent agreed on a payment schedule with BlockFi who reportedly did not pay.

The report of the lawsuit highlights textually: “Emergent failed to comply with its obligations under the Pledge Agreement and BlockFi.
therefore, it is entitled to all or as much of the Collateral as is necessary to satisfy Emergent’s needs. As a result, the Collateral is the property of the bankrupt BlockFi masses because BlockFi had superior rights to the Collateral as of the Petition Date.”

Background

In May, Bankman-Fried acquired a 7.6% stake in the online brokerage firm. Robinhoodby purchasing a total of USD $648 million in Robinhood shares through its investment company, Robinhood. Emergent. AnPreviously it had been believed that it had been through the FTX exchange, which Bankman-Fried had denied.

Then, in July, FTX confirmed that it would acquire BlockFi.

The cryptocurrency firm initially denied that the majority of its assets were held in FTX at the beginning of the month, but also recognized a “significant exposure.” a FTX. Nov. 11, following the collapse of FTX, BlockFi suspended withdrawals.

Yesterday, BlockFi became the latest firm to file for bankruptcy as a result of the collapse of cryptocurrency exchange FTX. In the bankruptcy filing, BlockFi reported that it has assets between USD $1 billion and USD $10 billionwith liabilities in the same range, along with more than 100,000 creditors.

Sources: Financial Times, Reuters, Coindesk, request, Cointelegraph, archive

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WARNING: This is an informational article. DiarioBitcoin is a media outlet, it does not promote, endorse or recommend any particular investment. It is worth noting that cryptoasset investments are not regulated in some countries. They may not be appropriate for retail investors, as the full amount invested could be lost. Please check your country’s laws before investing.

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