Saturday, February 4, 2023

BlockFi sues FTX’s Bankman-Fried over shares in Robinhood

Newly-bankrupt crypto lending platform BlockFi has filed a lawsuit towards Sam Bankman-Fried’s holding firm Emergent Constancy Applied sciences searching for his shares in Robinhood that had been pledged as collateral earlier in November.

The go well with was filed on Nov. 28 in america Chapter Court docket for the District of New Jersey simply hours after BlockFi filed for Chapter 11 bankruptcy in the identical court docket.

As per the submitting, BlockFi is demanding Emergent turnover collateral as a part of a Nov. 9 pledge settlement that noticed Emergent conform to a cost schedule with BlockFi that it has allegedly didn’t pay.

BlockFi names the collateral as “together with sure shares of frequent inventory.”

In Might, Bankman-Fried acquired a 7.6% stake in the web brokerage agency Robinhood, shopping for a complete of $648 million in Robinhood shares via his Emergent funding firm.

Associated: FTX collapse drives curiosity around Sam Bankman-Fried, Google data shows

BlockFi is among the newest corporations to file for chapter on account of the collapse of FTX crypto change.

The crypto agency initially previously denied {that a} majority of its property had been held on FTX earlier in the month, but additionally acknowledged “vital publicity” to FTX.

In its chapter submitting, BlockFi said that it has property between $1 billion and $10 billion with liabilities in the identical vary, together with over 100,000 collectors.