Sam-Bankman Fried (SBF) says he needs access to Robinhood shares more than the customers. The shares are worth more than $460 million, and SBF plans to use them to fund his legal expenses. He says while the customers only risk economic loss without these shares, the consequences would be serious and “irreparable.” This is even after Alameda Research used the shares as collateral to take a loan from BlockFi.
Multiple parties bid claim on the Robinhood shares
Currently, the 3 main parties that are trying to gain control of the shares are BlockFi, the new FTX management and Sam-Bankman Fried himself. BlockFi is bidding claim on the assets because they were used as collateral by Alameda Research to get a loan from them. The new FTX management wants to gain access because they are accumulating assets to pay back users and other parties. In contrast, SBF wants to use these shares for his personal gain.
This is why Sam has even asked the court to reject the stay motion on the Robinhood shares that are worth more than $460 million. He says that the FTX management has failed to explain why such a measure is needed. However, all this might not matter because the DoJ now has the warrant to seize those shares.
He wants the court to accept that he will use the shares to fund his trial while customers and debtors of FTX face economic loss. And that’s what he said in the filing. He also said that the shares are not owned by FTX or Alameda but by Emergent Fidelity Technology, where he holds a 90% stake. However, the problem is that funds were borrowed from Alameda to purchase these shares.
Community’s reaction
The crypto community is obviously pissed at him for his ignorance towards the customers and others involved with FTX. One person tweeted about the same, saying that “SBF gives new meaning to chutzpah…….” The term means extreme self-confidence or audacity. While another person wrote, “This is one of the most disgusting lines I’ve ever read…………. What happened to ‘Nothing matters more than making customers whole?”
What are your thoughts on the baseless reason that SBF used as he says he needs Robinhood shares? And do you think the court will listen to him? Let us know in the comments below. And, if you found our content informative, share it with your family and friends.
Also Read: Cathie Wood sold 99% of its Silvergate stake after its customer deposits fell.
